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US Stocks Plunge on Weak Jobs Data, Oil Soars Amid Iran Tensions

US stock indices fell sharply following a disappointing February jobs report that showed an unexpected loss of 92,000 jobs. Concurrently, crude oil prices surged over 12% in a week, driven by escalating tensions between the US and Iran. Experts warn the conflict could lead to the largest oil supply disruption in history if flows through the Strait of Hormuz are affected. The volatility in energy markets and weak economic data contributed to a broader downturn in global equities.

Key Points: US Stocks Fall on Jobs Report, Oil Prices Spike on Iran Conflict

  • US lost 92,000 jobs in February
  • Unemployment rate rose to 4.4%
  • Crude oil prices surged over 12% weekly
  • Escalating US-Iran tensions threaten oil supplies
  • Global stock markets in Europe and Asia also dipped
2 min read

US stock indices slide after weak February jobs report

US stock indices slid after a weak February jobs report. Oil prices surged over 12% amid escalating US-Iran tensions, raising fears of a major supply disruption.

"the ongoing conflict between the United States and Iran is likely to keep the prices elevated. - Apurva Sheth"

Washington DC, March 7

Stock indices in the US fell substantially after Friday's jobs report, which showed the US unexpectedly lost jobs in February, The Wall Street Journal reported.

Nasdaq closed at 22,387.68, down 1.59 per cent.

On the employment report, February's 92,000 lost jobs fell short of economists' expected gain of about 50,000 jobs. The unemployment rate ticked up to 4.4 per cent from 4.3 per cent in January.

Besides, stocks in Europe and Asia also dipped, weighed down by indications of prolonged West Asia conflict.

Meanwhile, crude oil prices shot up sharply, reportedly after the US President Donald Trump sought what he called "unconditional surrender" from Iran, intensifying worries about a prolonged conflict that could disrupt global energy supplies.

Crude Oil WTI Futures were 12.2 per cent up at USD 90.90 at the time of filing this report. It has seen its biggest weekly gain since April 2020, as per reports.

Escalating tensions in Iran and the wider West Asia region have intensified concerns over global crude oil supplies, with experts warning of sustained volatility that could potentially impact the global energy sector.

Apurva Sheth, Head of Market Perspectives and Research, SAMCO Securities, said it seems that the ongoing conflict between the United States and Iran is likely to keep the prices elevated.

The Trump administration sought to rein in soaring oil prices by dialing back US sanctions on Moscow. The Treasury on Thursday issued a waiver allowing India to buy Russian oil stranded at sea, and separately allowed transactions with the German branch of Russia's Rosneft state oil company, as per the WSJ report.

The war between the United States and Israel against Iran has the potential to be the largest oil supply disruption in history if oil flows via the narrow Strait of Hormuz remain low or come to a halt, said Jim Burkhard, Global Head of Crude Oil Research at S&P Global Energy.

"Initially, energy infrastructure had not been targeted by Iran, but that has changed with attacks on facilities in Saudi Arabia and Qatar. This adds a critical further dimension to the shock wave hitting oil and gas markets, according to a new S&P Global Energy analysis," Jim Burkhard said.

- ANI

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Reader Comments

P
Priya S
The oil price surge is the real concern for us common people. Petrol and diesel prices in India will shoot up again, affecting everything from transport to vegetable prices. The government needs to use this Russian oil waiver wisely to cushion the blow.
R
Rohit P
Global instability always hits the Indian middle class the hardest. Our investments suffer, inflation rises, and economic growth slows. We need strong, independent foreign and economic policies that aren't so vulnerable to these external shocks.
S
Sarah B
While the focus is on oil and stocks, let's not forget the human cost of prolonged conflict in West Asia. Many Indian expatriates work in the Gulf region. Their safety and remittances, which are crucial for our economy, are also at risk.
M
Michael C
The article mentions the US allowing India to buy stranded Russian oil. This is a pragmatic move. In these turbulent times, India must prioritize energy security and affordable prices for its citizens, regardless of geopolitical pressures.
K
Kavya N
It's a domino effect. US jobs down → their economy worries → global markets fall → oil prices spike due to conflict → India imports costly oil → inflation rises here. We're all connected. Time to review my SIPs this weekend. 😅
V
Vikram M

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