Stocks Sink Worldwide Thursday         03/12 15:30

   With no clear end in sight, the war with Iran sent oil prices back to $100 
per barrel on Thursday, and stocks sank worldwide.

   NEW YORK (AP) -- With no clear end in sight, the war with Iran sent oil 
prices back to $100 per barrel on Thursday, and stocks sank worldwide.

   The S&P 500 fell 1.5% and resumed its sharp swings following a couple days 
of relative calm. The Dow Jones Industrial Average dropped 739 points, or 1.6%, 
and the Nasdaq composite lost 1.8%.

   The center of action was again the oil market, where the price of a barrel 
of Brent crude, the international standard, climbed 9.2% to settle at $100.46. 
Worries are worsening that the war could block the production of oil in the 
Persian Gulf for a long time and cause a debilitating surge of inflation for 
the global economy.

   Iran's new supreme leader released his first statement Thursday since 
succeeding his late father, saying his country would keep up attacks on Gulf 
Arab neighbors and use the effective closure of the Strait of Hormuz as 
leverage against the United States and Israel. A fifth of the world's oil 
typically sails through the strait, and oil producers in the region are cutting 
production because their crude has nowhere to go.

   Countries around the world are trying to make up for that, and the 
International Energy Agency said Wednesday that its members would release a 
record amount of oil, 400 million barrels, from stockpiles built for such 
emergencies.

   But such moves are short-term fixes, and they do not clear the long-term 
risks. Analysts have said that if the Strait of Hormuz remains closed, oil 
prices could jump to $150.

   To be sure, the U.S. stock market has a history of bouncing back relatively 
quickly from military conflicts in the Middle East and elsewhere, as long as 
oil prices don't stay too high for too long. Even with all the up- and- down 
swings of the last couple weeks, many rocking markets hour to hour, the S&P 500 
is just 4.4% below its all-time high set in January.

   What's made this jump for oil prices frightening is not only the degree -- 
prices jumped near $120 this week to their highest level since 2022 -- but that 
they're occurring during an uncertain time for the economy.

   Last month's hiring by U.S. employers was surprisingly weak, which raised 
worries about a possible worst-case scenario for the economy called 
"stagflation." That's where economic growth stagnates while inflation remains 
high, and it's a miserable mix that the Federal Reserve has no good tools to 
fix.

   A more encouraging signal arrived Thursday. A report said that the number of 
U.S. workers applying for unemployment benefits inched lower last week. That's 
a sign that layoffs are potentially remaining low around the country.

   Dollar General, meanwhile, reported better profit and revenue for the latest 
quarter than analysts expected. But the retailer with relatively low prices, 
whose customers often have the least cushion to absorb higher gasoline prices, 
gave forecasts for revenue this upcoming year that indicated a potential 
slowdown in growth. Its stock fell 6.1%.

   Some of Wall Street's worst losses again hit companies with big fuel bills. 
Cruise-ship operator Carnival fell 7.9%, and United Airlines sank 4.6%.

   Worries about the private-credit industry also continued to hurt the market. 
Investors have been pulling their money out of some funds and companies that 
have lent to businesses whose profits are under threat. Many of the worries are 
focused on business that may not pay back their loans because of competition 
from AI-powered rivals.

   Morgan Stanley fell 4.1% after its North Haven Private Income Fund said it 
allowed investors to redeem 5% of its total shares instead of the nearly 11% 
they had requested. That 5% cap is the advertised limit.

   All told, the S&P 500 fell 103.18 points to 6,672.62. The Dow Jones 
Industrial Average dropped 739.42 to 46,677.85, and the Nasdaq composite sank 
404.16 to 22,311.98.

   In stock markets abroad, indexes fell across Europe and Asia.

   Japan's Nikkei 225 dropped 1%, and France's CAC 40 sank 0.7% for two of the 
world's bigger moves.

   In the bond market, Treasury yields continued to climb because of upward 
pressure from rising oil prices. The yield on the 10-year Treasury rose to 
4.26% from 4.21% late Wednesday and from just 3.97% before the war started.

   Higher yields make all kinds of borrowing more expensive, such as mortgages 
for potential U.S. homebuyers and bond offerings for companies looking to 
expand. They also push down on prices for all kinds of investments, from stocks 
to crypto.

   Because of the spike for oil prices, traders have pushed back forecasts for 
when the Fed could resume its cuts to interest rates. President Donald Trump 
has been angrily calling for such cuts, which would give the economy and job 
market a boost but also potentially worsen inflation.

   A barrel of benchmark U.S. crude rose 9.7% to settle at $95.73.