Market conditions shifted abruptly during the evening session, with oil prices experiencing a sharp decline while gold, silver, and U.S. equities moved higher.
In U.S. stock markets, the three major indices opened higher collectively. At the time of reporting, the Nasdaq, Dow Jones, and S&P 500 indices were all up by more than 1%.
Among U.S.-listed Chinese stocks, the Nasdaq Golden Dragon Index rose over 2%. Viomi Technology gained more than 7%, Li Auto advanced over 5%, while Nio and RLX Technology both increased by more than 4%.
In the oil market, WTI crude fell over 4%, dropping below $94 per barrel, while Brent crude declined nearly 3%.
Gold and silver reversed their earlier weakness, staging a V-shaped recovery during the session. Gold climbed back above $5,000 per ounce, while silver, which had earlier fallen more than 4%, turned positive. Gold had previously declined over 1%.
The Middle East remains a key focus for market participants. Former U.S. President Donald Trump stated he believes the conflict will not last much longer. He added that once the war concludes, oil prices will decline rapidly.
U.S. Treasury Secretary Janet Yellen indicated that oil prices could fall "well below" $80 per barrel within a few months.
Previous reports suggested the U.S. government planned to announce the formation of a so-called "escort alliance" in the Strait of Hormuz, but the proposal has received a cool reception.
On March 16, Italian Foreign Minister Antonio Tajani stated that diplomacy is currently the correct path to resolve tensions in the Strait of Hormuz. Tajani expressed that he does not believe any naval operations should be extended into the strait at this time.
Also on March 16, Spanish Defense Minister Margarita Robles ruled out Spain's participation in any potential European Union naval operation in the Strait of Hormuz.
German Defense Minister Boris Pistorius stated in Berlin that Germany has rejected a U.S. request for military support to ensure safe navigation in the Strait of Hormuz. Pistorius noted that the U.S. military possesses a powerful navy and questioned why former President Trump would expect "one or two European frigates" to accomplish what the U.S. Navy itself cannot achieve.
In related developments, Iran's Islamic Revolutionary Guard Corps issued a statement on the afternoon of March 16 announcing the 56th wave of strikes in its "True Promise 4" operation. The statement identified the main targets as Israel's Southern Command headquarters, strategic missile storage facilities belonging to Rafael Advanced Defense Systems, and the U.S. military's Al Udeid Air Base in Qatar.
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