Iran Conflict: Stocks Tumble as Oil Tops $100/Barrel 3/9/26

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Carl Quintanilla (0:54)

Market Moving Insight and Analysis join Jim Cramer, David Faber and me, Carl Quintanilla on the opening bell hour of CNBC Squawk on the Street. Good Monday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer at Post 9 of the New York Stock Exchange. Faber has the morning off. Oil is the story as the Iran War moves into its second week. Crude tops $119 last night as the Journal calls this the most severe energy crisis since the 70s. Future is sharply negative ahead of a busy week of inflation data. VIX tops $35 the 10 year round $417. We will begin with triple digit oil and the slump in stocks around the globe in reaction to the Mideast conflict. Gulf states cutting some production as the Strait of Hormuz is effectively shut resulting in some supply disruptions, Jim. And we're tracking the traffic there as best we can. Everybody is.

Jim Cramer (1:44)

Yeah, I mean, it sounds like that there could be just a gigantic amount of oil off the table. Because even though the Strait of Hormuz, that's 20 percent. But Hormuz also matters in terms of just the idea that none of these countries have enough storage room. You're getting Kuwait, UAE, Saudi Arabia down, Bahrain. Now, I would point out that there's been no instance where you have an increase almost like we've had if you take the overnight, where we haven't had a bear market. And it's pretty daunting because I can't figure out an off ramp yet. Yeah.

Carl Quintanilla (2:24)

People are starting to put some numbers on things. Airlines are a good example. Milius, over the weekend, they point out it took 12 days for oil to peak after the Ukraine war began. It took 148 days for it to retrace those gains.

Jim Cramer (2:39)

Yeah, I think that that's emblematic. I think that when you even look at some of these things, like a China surge in 2008, of course, then that was also with the Great Recession. Yeah, first you had, it goes up 120 percent, then the market goes down 50 percent. First Gulf War, up 100 percent, then S&P goes down minus 20 Second Gulf War, up 80 percent, S&P goes down 40 Pandemic surge, 2022, goes up 139, market goes down 19 There's no instance of what we had last night where the market doesn't go down 20 percent. And I think that we were down 2.5 percent last night before this talk of Europe and their SPR. I don't think the market should have snapped back. I don't get that. I think we'll see that today.

Carl Quintanilla (3:29)

We are looking for more clarity, possibility of G7 finance ministers getting together, talk about an emergency release. It's a discussion in Japan. India for now says they're not going to have any emergency release. We'll see if that changes.

Jim Cramer (3:43)

You've got these, what's hurt worse.

Thank you to Michael Semblis. Greece from JP Morgan. Greece 56% of energy from the straight. South Korea 33% of the energy from the straight. Thailand 27, Taiwan 27, Singapore 26, Pakistan 25, India is 13 US is one, but it doesn't matter because it's global market. Right.

Carl Quintanilla (4:05)

So that's, people are starting to draw some lines between countries that are big energy importers in Asia who also have tech-heavy equity markets. We saw what happened to the Cospi overnight. Trading was suspended at one point when they were down eight. Nikkei down five, worst in, well, since April. And people are thinking about chip production, Jim. You need sulfuric acid to make chip sets. That's another.

Jim Cramer (4:29)

No, there are a lot of things that are wrong. I think that we're kind of too bullish. The ESP down this little is too bullish. And I say that because there's so many different moving parts. Just last night, I mean, we saw these gigantic declines in Samsung. And SK Hydex, I mean, these are companies that are equivalent of Micron, equivalent of Western Digital, Sanidisk, of course, they produce the biggest amount of the chips that will be on display at the GDC next week with NVIDIA. Right. Because that's who makes them.