Market Summary: What Happened Yesterday and What Awaits us Today (March 13):

Oil supply disruptions shake global markets and put pressure on stocks.

US stock indices fell sharply at the close of trading on Thursday, amid a strong rise in oil prices and escalating concerns about global supply disruptions due to geopolitical tensions in the Middle East.

The Standard & Poor's 500 index fell by 1.5%, while the tech-heavy Nasdaq Composite index declined by about 1.8%.

The Dow Jones Industrial Average also fell by 1.6%, losing about 739 points during the session.

These losses came at a time when oil prices jumped significantly, after the International Energy Agency warned that a war with Iran had caused the biggest disruption to oil supplies in the history of the global market.

The agency had announced a day earlier the release of 400 million barrels from strategic reserves in an attempt to calm prices.

It also lowered its forecast for global supply growth in 2026 to about 1.1 million barrels per day, compared with its previous forecast of 2.4 million barrels per day.

In the same context, Iran’s new Supreme Leader stated that the Strait of Hormuz, one of the world’s most important oil shipping lanes, should remain closed to put pressure on adversaries, which has increased anxiety in global energy markets.

On the commodities front, West Texas Intermediate crude futures, the U.S. benchmark for oil prices, rose by more than 10% to $96.50 a barrel.

Brent crude, the global benchmark for oil prices, also climbed above $100 a barrel for the first time since August 2022.

In the bond market, the yield on 10-year US Treasury bonds rose to 4.26%, its highest level since early February, compared to the previous day's close of 4.23%.

In the metals and currency markets, gold futures fell by about 1.5% to around $5,100 an ounce, while silver fell by about 1% to $84.70.

In contrast, the US dollar index, which measures the performance of the US currency against a basket of major currencies, rose by 0.5% to 99.71 points.

Bitcoin also traded near the $70,400 level with a slight decline during the session.

Dean Chen, a market analyst at Bitonics, explained that uncertainty surrounding energy supplies and the potential for military escalation has pushed global markets into a state of anticipation, where geopolitical risks intersect with economic forecasts and monetary policies.

On the corporate front, shares of the major technology companies known as the Big Seven declined, with Tesla leading the losses with a drop of more than 3%.

Shares in Honda Motor Co., listed in the US, fell by more than 5% after the company announced it could incur expenses and losses of up to 2.5 trillion yen (about $15.75 billion) as a result of reassessing its strategy in the electric vehicle sector, expecting to post a net loss during the current fiscal year instead of making a profit.

In stock movements following the announcement of the results, shares of Bitco Health & Wellness jumped by about 35%, while shares of Dick's Sporting Goods rose slightly.

In contrast, UI Path shares fell by 8%, and Dollar General shares dropped by about 6%. Adobe shares also declined by nearly 1.5% before the market closed, ahead of its earnings announcement.

In Asia, markets were mixed amid continued concerns about rising energy prices. Japan's Nikkei 225 index fell, while China's Shanghai Composite index saw limited movement.

Hong Kong’s Hang Seng index also saw notable fluctuations as investors monitored geopolitical developments and their potential impact on the global economy.

In Europe, most stock exchanges closed lower, affected by rising oil prices and a decline in risk appetite. The Stoxx Europe 600 index fell, as did the German DAX and the French CAC 40, with investors turning to safer assets.

Market Outlook

Analysts expect caution to continue in global markets during today's session, as investors continue to monitor developments in the Middle East and their potential impact on energy supplies.

Investors are also watching oil price movements and US bond yields, along with any developments related to shipping traffic through the Strait of Hormuz, which could play a key role in determining the direction of markets in the coming period.