Wall Street Rises, Bessent Promises Steps to Safeguard Persian Gulf Oil Flows
US stocks rallied on Wednesday (March 4th) after a volatile session, as investors monitored developments in the US-Israel war against Iran. The Dow Jones Industrial Average rose 180 points, or 0.4%, the S&P 500 gained 0.3%, and the Nasdaq Composite added 0.5%.
Sentiment was boosted after US Treasury Secretary Scott Bessent said the government would make a "series of announcements" to support the smooth flow of oil through the Persian Gulf. This statement followed President Donald Trump's claim the day before that the US would insure tankers in the Gulf and prepare US Navy escorts through the Strait of Hormuz if needed.
The oil price rally that had been strong since the outbreak of the conflict lost momentum after Bessent's comments. Brent fell 0.7% and WTI weakened more than 1%, after both closed Tuesday below their session peaks but still up more than 4%.
On the policy front, Bessent also stated that the 15% global tariffs announced by Trump late last month would take effect this week. However, he added his belief that within "five months," US tariffs could return to the levels they were at before the Supreme Court ruling overturned the previous tariff policy.
Meanwhile, tensions on the ground remain high. Trump said the US would provide risk insurance for maritime trade in the Persian Gulf to encourage the movement of tankers through the Strait of Hormuz, after tanker traffic halted following threats from an Iranian Revolutionary Guard commander. Israel also said it had launched further attacks on Tehran, with the Israeli defense minister declaring that it would suppress the Iranian regime's capabilities.
Source: Newsmaker.id
