Breaking: Two major negative news! Asia-Pacific stocks all turn red, A-shares plunge at midday, and oil prices suddenly spike.

How will the surge in oil prices impact the global supply chain?

Today’s opening reflects the post-GTC conference adjustments. The CPO sector plummeted, with funds shifting to finance and real estate sectors for defense, which can also be seen as stabilizing the index for easier selling. By midday, oil prices may have experienced a rally or panic selling spread, leading to intensified profit-taking and a unilateral market decline, with over 4,500 stocks closing lower.

As for the reason behind the midday spike in oil prices: Iran ignited a large natural gas field, further exacerbating the already tense global energy supply situation. Additionally, the UK Maritime Trade Operations (UKMTO) reported earlier that a tanker was attacked by an “unknown object” while anchored near the main oil port of Fujairah in the UAE on Monday evening.

Another important point is that Trump indicated a possible delay in his visit to China due to US-Iran tensions, suggesting the conflict could last longer, and the Strait of Hormuz might remain closed longer, pushing oil prices higher. Previously, the market viewed Trump’s visit to China as a key event; a delay could lead some funds to cash out earlier than expected. Today, Asia-Pacific stocks rose across the board, with only the A-shares plunging, which could be a significant factor.

In fact, this is already a difficult window to navigate. On one hand, high oil prices suppress market risk appetite; on the other, the Spring Festival turbulence has ended, and earnings season is approaching. Historically, sentiment tends to be low during this period. Recently, thousands of stocks have been declining daily, making losses normal.

Now, let’s look at today’s major news:

• Since the US and Israel launched military strikes against Iran, shipping through the Strait of Hormuz has nearly halted. US President Trump plans to form the so-called “Hormuz Alliance” to control the strait and pressure European, Asian, and Gulf countries to send warships. However, so far, many countries have been cautious or explicitly refused, with no official responses to the US call.

• Iran’s Parliament Speaker, Ali Larijani, stated on March 17 that Iran will no longer accept the cycle of “war—ceasefire—negotiation—war,” and must eliminate threats against Iran and the region entirely. Iranian Foreign Minister Amir Abdollahian said at a press conference in Tehran on March 16 that Iran’s blockade of the Strait of Hormuz targets only “enemies” and “those countries and their allies that unjustly attack our nation.”

• Early this morning, NVIDIA’s GTC conference was held. Previously, there was much talk about the CPO sector, with jokes exaggerating progress in replacing orthogonal backplanes, optical modules, and copper cables. In reality, NVIDIA’s applications are balanced across optical modules, CPO, and copper cables. Today’s opening saw a sharp decline in CPO stocks, with Tianfutong, Robotech, and Juguang Technology falling over 10%. Meanwhile, PCB and optical module leaders initially rose but then dropped as the market weakened.

• The Federal Reserve’s upcoming interest rate decision is imminent. Nick Timiraos, a well-known journalist dubbed the “New Fed Correspondent,” suggests that the Middle East conflict may reinforce expectations that the Fed will keep rates unchanged. The more complex issue is what signals officials will send about future rate movements in the coming months.

• Reports indicate that South Korea’s largest union, the “National Samsung Electronics Union (NSEU),” has threatened to vote on Samsung’s largest-ever strike plan. If approved by Wednesday, it could halt chip production in May, potentially causing Samsung hundreds of billions of dollars in losses. As the world’s largest memory chip manufacturer, a strike could significantly impact Samsung’s semiconductor business and exacerbate global supply bottlenecks, affecting industries from automotive and computers to smartphones.

Finally, a brief market overview: As of the close, the Shanghai Composite Index fell 0.85%, the ChiNext Index dropped 2.29%, with market turnover shrinking to 2.22 trillion yuan; Hong Kong’s Hang Seng Index rose 0.13%, while the Hang Seng Tech Index declined 0.08%.

By industry, only non-bank financials, banking, food and beverages, and real estate led gains, while sectors like communications, electronics, defense and military, machinery, and basic chemicals lagged.

Risk reminder:

Stock markets carry risks; investments should be cautious. This article does not constitute investment advice. Readers should think independently.