Economy News

Oil jumps nearly 10% after strikes on Iran; Asia sells off, but Wall Street ends flat

Markets had their first chance on Monday 2 March to react to the US and Israeli strikes on Iran, which began on 28 February and killed Supreme Leader Ayatollah Ali Khamenei, USA Today reports. Oil jumped. AP says Brent rose nearly 10% to nearly $80 a barrel and US crude 9% to $73. Nikkei Asia says Brent surged more than 13% past $80 when Asian markets opened, its highest level since January last year.

Asia took the hit first. Japanese stocks fell as much as 2.7%, Nikkei Asia reports; AP says the Nikkei 225 closed 1.4% lower at 58,057.24, Hong Kong's Hang Seng lost 2.1%, India's Sensex 2.1%, Singapore 2.3% and Thailand 3.1%, while Shanghai rose 0.5% and South Korea was closed for a holiday. Germany's DAX fell 2.2%. Gold rose 3.4% to about $5,426 an ounce.

Wall Street recovered. By the close, USA Today says, the Dow was down just 0.15% at 48,904.78, the S&P 500 up 0.04% and the Nasdaq up 0.36%, with WTI up 6.07% at $71.09.

“When markets are fragile, they do not need a knockout blow.” — Stephen Innes, SPI Asset Management, via AP

How each outlet framed it

• AP — the global sell-off and the Strait of Hormuz, through which roughly a fifth of oil and LNG flows.
• Nikkei Asia — the Tokyo open: the steepest oil move and fears that the strikes will hurt global trade.
• USA Today — the US calm: Edward Jones said markets “may have already priced in much of the risk”.

Where the numbers differ: Brent's jump is “nearly 10%” for AP and “more than 13%” for Nikkei Asia, which measured at the open. US crude was up 9% at $73 in AP's report, but 6.07% at $71.09 in USA Today's later figure.