Geopolitical tensions continued to sway sentiment on Thursday, pressuring stocks lower once again as crude prices continued to climb. Driving this afternoon's surge in oil prices were comments from Iran's new Supreme Leader Mojtaba Khamenei, who said the Strait of Hormuz must stay closed. Per Energy Secretary Chris Wright, the U.S. Navy is "not ready" to usher tankers through the Strait.
A broad finance sector selloff added pressure as well, pushing the Dow more than 700 points lower. The blue-chip index saw a third-straight loss, while alongside the S&P 500 and Nasdaq marked a triple-digit drop. Elsewhere, the Cboe Volatility Index (VIX) enjoyed its first gain in four sessions.
Oil Prices Extend Surge on Iran Comments
Oil prices continued to surge, with an added push from Iran's Khamenei's comments regarding the Strait of Hormuz closure. While Brent crude settled at $100, April-dated West Texas Intermediate (WTI) crude rose 9.7% to close at $95.73 per barrel.
As the U.S. dollar continued to rise and worries around borrowing costs resume, investors retreated from safe havens. April-dated gold futures fell 0.3% to settle at $5,165.10 an ounce.
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