Overnight, the crude oil market experienced a huge shock! "China Golden Dragon" surged significantly

On March 11, Beijing time, the stock markets of Japan and South Korea opened sharply higher. As of the time of reporting, the Nikkei 225 index rose by 1.28%, and the Korea Composite Index increased by 2.27%.

Overnight, the capital markets experienced considerable volatility. In the commodities market, oil prices suddenly fluctuated dramatically, with WTI crude oil futures dropping below $80 per barrel intraday, and Brent crude oil futures once falling by 17%. According to the latest monthly report from the U.S. Energy Information Administration (EIA), Brent crude oil prices are expected to remain above $95 per barrel over the next two months.

The U.S. stock market performed relatively flat, with the Nasdaq Composite closing slightly higher. At the close, the Dow Jones Industrial Average fell by 0.07%, to 47,706.51 points; the Nasdaq rose by 0.01%, to 22,697.10 points; the S&P 500 declined by 0.21%, to 6,781.48 points. Notably, Chinese assets performed strongly. The Nasdaq Golden Dragon China Index increased by 1.96%, with most Chinese concept stocks rising, including NIO, which surged over 15%, Futu Holdings up over 7%, and iQIYI up over 5%.

Regarding international affairs, there are new developments in the Middle East. Israel’s foreign minister stated that Israel does not seek an “endless war” and will coordinate with the U.S. on when to end its actions against Iran; the U.S. claimed that American warships have not yet escorted vessels through the Strait of Hormuz; Iran’s vice president said Iran will continue defending its territory and has not given up on resolving issues through negotiations.

Chinese Assets Outperform the Market

On Tuesday local time, the three major U.S. stock indices showed mixed movements. At the close, the Dow fell by 34.29 points, a decrease of 0.07%, to 47,706.51 points; the Nasdaq rose by 1.16 points, an increase of 0.01%, to 22,697.10 points; the S&P 500 declined by 14.51 points, a decrease of 0.21%, to 6,781.48 points.

Large-cap technology stocks showed mixed performance, with Intel rising over 2%, Nvidia and Meta up over 1%, while Apple, Amazon, and Google saw modest gains, and Microsoft and TSMC declined slightly.

The optical communications sector surged, with AAOI up nearly 9%, Lumentum up over 4%; storage stocks also rose, with SanDisk up over 5%, Micron Technology up over 3%, and Western Digital up over 1%.

Most popular Chinese concept stocks increased, with the Nasdaq China Golden Dragon Index up 1.96%. NIO surged over 15%, achieving its first quarterly profit. Futu Holdings rose over 7%, iQIYI over 5%, Alibaba over 3%, and Xpeng Motors over 2%.

Crude Oil Futures Plunge

Overnight, the oil market experienced intense volatility. WTI crude oil futures plummeted 15% intraday, breaking below $80 per barrel; Brent crude oil futures once fell more than 17%, with the lowest near $81 per barrel.

On the news front, the G7 (Canada, France, Germany, Italy, Japan, the UK, and the U.S.) requested the International Energy Agency (IEA) to assess the potential release of oil reserves. The IEA stated it would hold a meeting later to discuss whether to release strategic petroleum reserves.

Additionally, as the world’s largest oil producer and exporter, Saudi Aramco’s CEO and President Amin Nasser warned on March 10 during the annual report conference call that if Middle Eastern conflicts continue to disrupt shipping through the Strait of Hormuz, it could lead to “catastrophic consequences” for the global oil market.

According to the latest monthly report from the EIA, due to geopolitical tensions disrupting oil supplies, Brent crude oil prices are expected to stay above $95 per barrel over the next two months. Afterward, as supply recovers, prices may fall back to around $70 per barrel by the end of the year.

Previously, several oil-producing countries announced reductions in output amid transportation restrictions. The EIA indicated that as shipping gradually resumes, these production cuts will be eased. Once shipping through the Strait of Hormuz normalizes, global oil supply will continue to exceed demand.

Israeli Foreign Minister Says Not Seeking “Endless War”

Will Coordinate with the U.S. on Iran Action End Date

According to Xinhua News Agency, Israeli Foreign Minister Eliyahu Eliazar Sal 10th stated that Israel does not seek an “endless war” with Iran and will coordinate with the U.S. to decide when to end military actions against Iran.

Sal made this statement during a joint press conference in Jerusalem with visiting German Foreign Minister Annalena Baerbock.

He did not specify a timeline for current military operations. He emphasized that Israel will continue military actions until it and its partners believe “it is appropriate to stop.”

Sal claimed that Israel’s goal is to “eliminate the existential threat posed by Iran to Israel in the long term,” but achieving this under the current regime is difficult. Israel believes that regime change in Iran “may occur after military operations end,” and the current military actions aim to create conditions for regime change.

On February 28, the U.S. and Israel launched large-scale military strikes against Iran, which responded with attacks on Israeli and U.S. military bases and other targets in the Middle East.

White House: U.S. Warships Have Not Yet Escort Vessels Through the Strait of Hormuz

Xinhua News Agency reports that White House Press Secretary Karine Jean-Pierre said on the 10th that the U.S. Navy has not yet escorted any oil tankers or other ships through the Strait of Hormuz.

Jean-Pierre also stated that this “of course remains an option,” and if necessary, President Trump “will absolutely use it at the appropriate time.” On the 3rd, Trump said that if needed, the U.S. Navy would begin escorting oil tankers through the Strait of Hormuz.

Earlier that day, U.S. Energy Secretary Jennifer Granholm posted on social media claiming that “the U.S. Navy successfully escorted an oil tanker through the Strait of Hormuz,” but later deleted the post.

Jean-Pierre added that Trump “does not rule out” taking any options in military action against Iran, including deploying ground troops.

Iranian Vice President Says Will Continue Defending Homeland

Has Not Abandoned Negotiated Resolution

Xinhua News Agency reports that Iran’s Vice President Housain Zadeh on the 10th told Qatar’s Al Jazeera that Iran will continue defending its national territory as a “legal right and obligation.” He also said Iran has always sought to resolve crises through dialogue and has not launched attacks against neighboring countries.

Zadeh mentioned that President Ebrahim Raisi has repeatedly emphasized that current issues should be resolved through negotiations, and Iran’s diplomatic department has developed multiple response plans. He stated that Iran has never invaded any country and always seeks peaceful resolution through dialogue.

Zadeh also said that Iran’s actions in the Gulf region are legitimate self-defense, and Iran has engaged in multiple rounds of contact with neighboring and other countries. He reiterated the importance of maintaining good neighborly relations and developing bilateral ties.

On the same day, Iran’s Parliament Speaker Mohammad Bagher Ghalibaf said that Iran “absolutely does not seek a ceasefire” and must resolutely respond to “aggressors.” According to Iranian media reports on the same day, Iran’s Deputy Foreign Minister Gharib Abadi stated that Iran’s current priority is “decisive defense,” and “the cessation of war is in Iran’s hands.”