The three major indexes on Wall Street opened lower across the board after Ayatollah Seyyed Mojtaba Khamenei, elected as Iran's new supreme leader, declared an ultra-hardline response toward the United States and Israel.
As of 10:31 a.m. on the 12th (local time), on the New York Stock Exchange, the Dow Jones Industrial Average fell 683.61 points, or 1.44%, from the previous session to 46,733.66. The Standard & Poor's (S&P) 500 fell 84.32 points, or 1.24%, to 6,691.48, and the Nasdaq composite lost 356.13 points, or 1.57%, to 22,360.00.
With civilian ships continuing to sustain damage in and around the Strait of Hormuz, through which about 20% of the world's crude flows, investor sentiment in the market quickly deteriorated after Iran's new supreme leader declared a hardline response in his first message to the nation.
Mojtaba Khamenei, elected as supreme leader to succeed his father, Ayatollah Ali Khamenei, who was killed by U.S. and Israeli airstrikes, stressed in his first message to the nation that "the leverage of closing the Strait of Hormuz must certainly continue to be used." He also noted, "Research has also been conducted on opening other fronts that the enemy has little experience with and that are very vulnerable," hinting at the possibility of expanding the fronts.
The U.S. government said it needs more time to escort ships in the Strait of Hormuz. U.S. Energy Minister Chris Wright said, "It is not possible right now for U.S. forces to escort ships in the Strait of Hormuz," adding, "We are not ready yet." He added, "By the end of this month, there is a fairly high chance the Navy will be escorting tankers."
Adam Crisafulli of Vital Knowledge said, "Iran's strategy to create economic disruption in the Gulf region is working," adding, "With the Strait of Hormuz blocked and tankers under attack, Brent has surged to $100." He added, "Now their plan appears to be to use oil as leverage to pressure President Trump."
By sector, all sectors fell except utilities and energy. Blue Owl Capital shares fell more than 2% on news that Morgan Stanley and Cliffwater set withdrawal caps on multibillion-dollar private credit funds to stem continued investor outflows. Apollo Global and Blackstone fell 3.86% and 2.76%, respectively.
European stocks were also weak. The Euro Stoxx 50 index was down 1.49% from the previous session at 5,708.10 in transaction. Britain's FTSE 100 and France's CAC 40 fell 0.46% and 0.81%, respectively, while Germany's DAX fell 0.49% from the previous session.
International oil prices rose. At the same time, West Texas Intermediate (WTI) for April 2026 delivery, the front-month contract, was up 9.15% from the previous session at $95.23 per Barrel.