Quick overview

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Wall Street’s main indexes plunged on Thursday, March 12, as surging oil prices rattled investors after global efforts to release record volumes of strategic crude reserves failed to calm concerns about tanker traffic disruptions linked to the conflict with Iran.

In this context, the Dow Jones Industrial Average fell 1.6% to 46,677.85 points, the S&P 500 dropped 1.5% to 6,672.77, and the Nasdaq Composite declined 1.8% to 22,311.98.

Strait of Hormuz shutdown weighs on markets

Investor confidence was hit by the effective halt of ships passing through the Strait of Hormuz, a critical maritime chokepoint that carries roughly one-fifth of the world’s oil and liquefied natural gas supply.

Container shipping companies, seeking to protect crews and struggling to secure insurance coverage, have largely suspended transit through the narrow waterway.

“The Strait of Hormuz must remain closed,” said Iran’s state outlet Islamic Republic News Agency, citing the country’s new leader Mojtaba Khamenei.

Commercial vessels in and around the strait have been targeted by attacks, intensifying fears of reduced oil flows. On Wednesday, the United Kingdom Maritime Trade Operations, which monitors shipping activity in the region, reported that a third vessel had been struck by an unidentified projectile, after two other ships were hit and set on fire off the coast of Iraq.

Following the incidents, Iraq and Oman decided to shut down several oil terminals.

Meanwhile, Donald Trump said on his social platform Truth Social that since the United States is the world’s largest oil producer, “when oil prices rise, we make a lot of money.”

The shutdown of the Strait of Hormuz represents the largest supply disruption in oil market history. The Trump administration is reportedly considering a temporary waiver of the Jones Act, which regulates domestic shipping, to facilitate fuel transportation across the country.

Jobless claims decline

Thursday’s economic data showed that the number of Americans filing for unemployment benefits fell to 212,000 last week, below market expectations.

According to Michael Hanson of JPMorgan, initial claims have remained largely stable in recent weeks and within a relatively narrow range.

“Initial jobless claims have stayed close to the prior week’s level and, aside from a brief uptick in late January and early February, have remained below the average seen for most of 2025,” Hanson said.

He added that continuing claims have also fluctuated within a tight range this year, suggesting a labor market characterized by low hiring but also low unemployment, and indicating a healthier employment backdrop than the weak February nonfarm payrolls report might suggest.