Honestly, is there any place as dramatic as the stock market these days? Especially on April 2nd (US Eastern Time), the New York stock market really played with investors’ hearts. It closed mixed all day, with complex international situations hidden behind it.
Personally, every time this happens, I feel that the world of investment is truly difficult. It started to fall due to President Trump’s strong remarks, then stabilized again due to news from a strait in the Middle East. Today, I’d like to talk about what exactly happened that day and what we need to know.
## 1. Trump’s ‘Stone Age’ Remarks Freeze the Market
In fact, the US stock market was unusual from the start of the day. US President Donald Trump made very strong remarks about Iran. In a national address, he said, “We will hit Iran extremely hard for the next 2-3 weeks,” and even, “We will turn Iran back to the Stone Age.”
When such harsh words came out, the market had no choice but to react immediately. Investor sentiment rapidly contracted due to concerns about escalating geopolitical tensions, and the Dow Jones Industrial Average started to decline.
Honestly, I think such strong remarks directly affect international oil prices. In fact, the price of West Texas Intermediate (WTI) crude oil once surged by 13%. I realized once again how much impact a single unpredictable political statement can have on the global economy.
## 2. Strait of Hormuz Holds the Key to Reversal
But then, an unexpected reversal occurred in this frozen market. It was due to expectations regarding transit through the Strait of Hormuz. The Iranian Foreign Ministry announced that it was preparing a draft agreement with Oman to manage ship traffic.
As this news spread, market anxiety significantly decreased. International oil prices also gave back some of their gains, and while only the Dow Jones fell slightly, the S&P 500 and Nasdaq turned upward. Who would have known that the situation in the Middle East would play such a crucial role?
As many of you probably know, the Strait of Hormuz is a very important place where about 20% of the world’s seaborne oil transport passes. Ensuring safe passage through here is news that brings great relief to the global economy.
## 3. The Dual Face of the Strait of Hormuz: Transit Fee Controversy
But here’s another story. While Iran is preparing an agreement for safe passage through the Strait of Hormuz, it is actually showing signs of imposing a ‘transit fee’. The Iranian parliament reportedly approved a plan to impose transit fees on ships passing through the strait.
If this becomes a reality, there is talk that a transit fee of about $1 per barrel could be collected. For very large oil tankers, this could amount to billions of Korean Won. Honestly, this could lead to controversy over violations of international law and could be a significant burden for countries like ours that import crude oil.
Looking at this situation, I realize once again that the Strait of Hormuz goes beyond simply meaning ‘safe passage’ and exerts enormous influence on international politics and economics. I’m really interested to see how this transit fee issue will unfold in the future.
## 4. Market Resilience Seen Even Amidst Volatility
In conclusion, on April 2nd, the US stock market closed mixed, with President Trump’s strong remarks and expectations for transit through the Strait of Hormuz clashing. The Dow Jones Industrial Average fell by 0.13%, but the S&P 500 index rose by 0.11%, and the Nasdaq Composite index rose by 0.18%.
This situation shows that while the market reacts sensitively to geopolitical risks, it also has the resilience to recover quickly when diplomatic solutions or prospects for improvement are seen. As an investor, I think it’s really important to read these market trends well.
Of course, international situations are always unpredictable, but we should still try not to miss the big trends. I hope we all achieve successful results through wise investment!
