Detroit-based automakers Ford Motor Co. (NYSE:F), General Motors Co. (NYSE:GM) and Stellantis NV (NYSE:STLA) recorded declines in stock as the U.S.-Iran war intensifies and oil prices surge across the globe.
Ford, GM, Stellantis Slide
On Monday, Ford reported a decline of 4.97% at market close, dropping to $13.39, while GM was down 1.21% to $77.76 and Stellantis slipped 5.69% to $7.63 per share.
During Pre-market trading on Tuesday, Ford further declined 1.79% to $13.15, while GM fell 1.81% to $76.35. Stellantis, too, fell 5.64% further to $7.20. The decline comes as uncertainty looms around the auto industry as oil prices surge amid tensions between the U.S. and Iran.
It's worth noting that with President Donald Trump's anti-EV stance, automakers have rolled back their efforts to develop EVs and focus more on ICE vehicles, but Ford has committed to developing EVs with its Universal EV Platform, while GM reaffirmed its commitment to EVs with its refusal to sunset the Silverado EV Pickup.
Iran Closes Strait Of Hormuz, Oil Prices Surge
Iran said that it was closing the Strait of Hormuz, a key trade route for the global crude oil supply chain, which is also responsible for over 27% of the world's crude oil supply.
The global supply has also been disrupted further as QatarEnergy suspended LNG production following military strikes that hit its facilities in Ras Laffan and Mesaieed industrial cities.
The escalating tensions follow a U.S.-Israeli joint operation, which resulted in the death of Iran’s Supreme Leader Ayatollah Ali Khamenei. While U.S. Secretary of State Marco Rubio has addressed growing concerns across the globe over rising energy prices due to the U.S.-Iran war and hinted that there was a plan in place, which would be implemented on Tuesday.
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