Significant positive signals emerged in the Middle East tensions. In the early hours Beijing time, according to CCTV News, U.S. President Donald Trump stated in a telephone interview, "I think this war is largely over, pretty much." This development led to a dissipation of market panic, with the VIX fear index plummeting over 13%. Risk assets staged a strong rebound in the final trading session; the Nasdaq surged more than 1%, nearly recovering all losses incurred since the U.S.-Iran conflict began. The Nasdaq Golden Dragon China Index jumped 1.76%.
Crude oil prices, however, experienced a sharp decline. WTI crude opened significantly lower in Asia, at one point dropping over 10% to $85.02 per barrel, marking a cumulative decline of over 28% from yesterday's peak. Following an emergency video conference, the Group of Seven (G7) issued a joint statement indicating they are "ready to" take necessary measures to support global energy supply and stabilize prices.
Additionally, European Council President Costa and European Commission President von der Leyen stated on the 9th that the European Union is willing to do everything possible to de-escalate the current situation with Iran and encourage all parties to return to the negotiating table. EU leaders held a video conference with leaders from several Middle Eastern countries that day to discuss the latest developments regarding Iran.
**Major U.S. Stock Reversal**
In the early hours of March 10, Beijing time, the three major U.S. stock indices surged in a straight line during the final trading session. At the close, the Dow Jones Industrial Average was up 0.50%, the S&P 500 index rose 0.83%, and the Nasdaq Composite climbed 1.38%. Earlier in the session, the Dow had fallen nearly 2%, while the Nasdaq and S&P 500 had dropped over 1%.
The catalyst was news from CCTV News that U.S. President Donald Trump indicated U.S. military action against Iran could conclude very soon. Reportedly, Trump said in a telephone interview, "I think this war is largely over, pretty much. They no longer have a navy, no communications system, and no air force left." Trump also remarked that this progress was "much faster" than his initial estimate of a 4 to 5-week timeframe.
Major U.S. tech stocks closed higher across the board. AMD and Micron Technology surged over 5%, Broadcom and Intel jumped over 4%, Nvidia and Google rose over 2%, while Apple, Microsoft, Amazon, Meta, and Tesla all posted modest gains.
Popular U.S.-listed Chinese stocks generally advanced, with the Nasdaq Golden Dragon China Index rising 1.76%. Kingsoft Cloud soared over 19%, Bilibili and XPeng surged over 6%, Nio, Li Auto, and Pony.ai gained over 3%, Baidu increased over 2%, Alibaba and JD.com rose over 1%, while Pinduoduo and Tencent Music saw slight increases.
John Luke Tyner, Portfolio Manager and Director of Fixed Income at Aptus Capital Advisors, commented, "It looks like things are moving in a better direction."
When asked about Iran's new Supreme Leader, Mujtaba Khamenei, Trump stated, "I have nothing to say to him, nothing at all." Trump claimed he had "someone in mind to succeed Khamenei" but provided no further details.
On March 9 local time, Russian Presidential Aide Yuri Ushakov announced that Russian President Vladimir Putin and U.S. President Donald Trump had a phone conversation that day. Ushakov said the call, initiated by the U.S. side, lasted about an hour and was practical, candid, and constructive. The discussion focused on the Middle East situation related to Iran and the negotiation process concerning Ukraine.
Regarding the Iran situation, both sides conducted specific and beneficial communication, with Putin urging a swift return to political and diplomatic means to resolve the conflict.
**Crude Oil Plunge**
Furthermore, Trump mentioned that the U.S. is "considering taking control of the Strait of Hormuz" and could "take a lot of actions."
Consequently, Brent crude prices fell close to $84 per barrel. Previously, during overnight trading, oil prices had breached $100 per barrel and even climbed above $119, marking the first time since 2022 they had reached that level.
In early Asian trading on March 10, WTI crude opened with a significant drop, at one point falling over 10%. At the time of reporting, it was down 7.67% at $87.5 per barrel, while Brent crude fell 3.13% to $89.79 per barrel.
According to CCTV News, on March 9 local time, U.S. Energy Secretary Wright stated that the U.S. government is "in discussions" about coordinating a release from the Strategic Petroleum Reserve to address the current energy market situation.
Finance ministers from the G7 issued a statement on March 9, affirming their readiness to take necessary measures, including potentially releasing reserves, to support global energy supply. The G7 finance ministers held a video conference that day, also meeting with leaders from the International Monetary Fund, the World Bank Group, the Organisation for Economic Co-operation and Development, and the International Energy Agency to discuss the current Middle East conflict.
The statement noted that the parties will continue to closely monitor developments and energy market dynamics and will reconvene as necessary to exchange information and enhance coordination among the G7 and international partners.
However, it is important to note that Israeli military actions targeting Iran are continuing. According to CCTV News, in the early hours of the 10th Tehran time, reporters learned that the Israeli Defense Forces announced a new round of large-scale airstrikes on the Iranian capital, Tehran. Earlier, explosions were heard in Tehran, and air defense systems were activated. Subsequently, explosions were reported in multiple areas including western, eastern, and southern Tehran. Around the same time, explosions were also heard in Karaj and Isfahan, Iran.
On the evening of March 9 local time, the Israeli Defense Forces issued a statement declaring strikes on dozens of infrastructure targets within Iran, including a drone command center of the Islamic Revolutionary Guard Corps. The Israeli military claimed that Iran used this command center to launch drones towards Israel and that it housed additional drones prepared for launch. The Israeli military also stated it would expand strikes on infrastructure related to ballistic missile production within Iran.
Currently, Iran has not yet issued a response.