Dow Jones and Nasdaq set for cautious start as Gulf shipping attacks support oil prices

• Saudi Arabia intercepted seven drones targeting oil fields while the US destroyed 16 Iranian mine-laying vessels in the Strait of Hormuz, forcing vessel evacuations and raising supply concerns
• Agricultural commodity prices surged on shipping disruption fears, with cocoa up nearly 20% in March, and coffee and wheat both rising around 5%
• February CPI rose 0.3% month-over-month and 2.4% year-over-year, matching forecasts, with core inflation at 2.5% annually before the recent energy price spike

Market Summary: US Markets Mixed as Gulf Shipping Attacks Elevate Oil Prices

Market Performance:

US markets opened mixed on March 11, 2026, with the Nasdaq rising 0.5% and S&P 500 up 0.2%, while the Dow Jones fell 0.4%. Technology stocks offset weakness in defensive sectors. European markets faced heavier pressure, with the FTSE 100 down 0.9% and Germany's DAX declining 1.4%.

Key Drivers:

Escalating attacks on shipping in the Strait of Hormuz pushed WTI crude oil up over 3% to $86.63 per barrel after a second vessel was struck overnight. Saudi Arabia intercepted seven drones targeting a strategic oil field, while the US destroyed 16 Iranian mine-laying vessels. Market volatility remains elevated due to bond market instability.

Inflation Data:

February CPI data met expectations, with headline inflation rising 0.3% month-over-month and 2.4% year-over-year. Core inflation increased 0.2% monthly and 2.5% annually, suggesting stable underlying price pressures before the recent energy price surge.

Individual Stock Movers:

Oracle surged over 14% after beating earnings expectations. Fertilizer producers CF Industries and Mosaic rallied on shipping disruption concerns. Energy stocks including Valero and Marathon Petroleum gained, along with tech names like Tesla, Dell, and Super Micro Computer. Dow laggards included Procter & Gamble, Sherwin-Williams, Caterpillar, and Home Depot.

Broader Impact:

Analysts warn that continued Gulf shipping disruption threatens inflation beyond fuel, affecting fertilizers, food, and industrial inputs. Agricultural commodities have moved sharply higher, with cocoa up nearly 20% this month, and coffee and wheat both up approximately 5%.