The downturn was fueled by rising geopolitical risks after President Donald Trump demanded on Saturday that Iran open the Hormuz Strait, threatening to attack Iran's energy facilities within 48 hours if it did not comply, according to multiple reports. On Monday, Trump announced he was postponing the deadline by five days, setting a new deadline of Monday, April 6, as reported by multiple outlets. The temporary pause is due to ongoing talks with Iran that are 'going very well,' Trump said, though it has been unclear during the week what negotiations are taking place. Trump also extended the halt on attacks against Iran's energy facilities for another ten days, according to reports.
Oil prices rose again on Thursday evening, with Brent crude reaching $107-108, according to multiple reports. Brent crude and West Texas Intermediate both rose about 3.8%, with Brent settling at just over $105 and WTI at over $96 per barrel, respectively. Rising oil prices are also darkening the stock market mood globally, as higher energy costs threaten to stoke inflation and slow economic growth.
Earlier on Thursday, Trump commented at a government meeting that energy prices 'haven't risen as much as I thought,' according to reports. The remarks came as statistics showed unexpectedly weak job figures, with 92,000 jobs lost (excluding agriculture) in February in the United States, according to multiple reports. The weak labor data added to concerns about the economy, compounding the negative sentiment from geopolitical tensions.
haven't risen as much as I thought
Asian stock markets declined on Friday morning, following the US sell-off. China's Shenzhen fell 1.4%, Shanghai dropped 0.6%, South Korea's Kospi slipped 0.2%, and Hong Kong's Hang Seng declined 0.4%, according to multiple reports. Tokyo's Nikkei 225 rose 0.3%, but the broader Topix was down 0.1%, indicating mixed sentiment across the region.
Technology stocks were particularly hard hit. Microsoft's stock fell 4.0% after announcing a buyout package for veterans in the US, with about 7% (8,750 people) of US staff eligible for early retirement, according to reports. Meta, the parent company of Facebook, is cutting 10% of its staff in a cost-cutting package, and its stock fell 2.3%, as reported by multiple outlets. The layoffs in the tech sector have added to investor unease about the industry's outlook.
The Nasdaq Composite has now fallen 10% compared to before the war started in late February, according to multiple reports. The decline reflects the cumulative impact of geopolitical uncertainty, rising oil prices, and weakening economic data.
going very well
In other news, avalanche danger is high in the Kebnekaise mountains on Friday, corresponding to level 4 on a 5-point scale, according to the Swedish Environmental Protection Agency. The agency warns of 'very dangerous conditions' and expects 'very large avalanches' in the Kebnekaise mountains. In Abisko and Riksgränsfjällen, the danger is assessed as significant, a 3 on the scale, while in other mountain areas, the danger is assessed as moderate, a 2 on the scale.
In sports, Sweden took a dream start against Ukraine in the World Cup playoff, with Viktor Gyökeres scoring in the 6th minute, according to reports. Meanwhile, several employees working on groundworks at SSAB in Luleå have sought medical care, though the nature of the health issues has not been disclosed.
The exact timeline of Trump's threats and postponements regarding attacks on Iran's energy facilities remains unclear, as does the nature of the negotiations between the US and Iran. The discrepancy in reported US stock market figures across sources also remains unexplained, with some outlets reporting different percentage declines for the same day. The details of the buyout package Microsoft offered to its US veterans have not been fully disclosed.