U.S. oil prices topped $100 a barrel and stocks plunged as President Donald Trump's ability to reassure Wall Street faded amid the ongoing war in Iran. The S&P 500 closed down 1.7% on Friday, notching its fifth-straight weekly decline, and has fallen about 7% since the U.S. attacked Iran on Feb. 28. The Dow Jones Industrial Average fell 1.7% on Friday and has lost nearly 4,000 points since the start of the war, entering correction territory.
How the Iran War is Impacting U.S. Oil Prices and Stock Markets
The war in Iran has had a significant impact on U.S. oil prices and stock markets. Since the U.S. attacked Iran on Feb. 28, the S&P 500 has declined about 7%, and the Dow Jones Industrial Average has lost nearly 4,000 points, entering correction territory. Oil prices have risen sharply, with U.S. crude topping $100 a barrel and global Brent crude at approximately $114. The yield on the 10-year Treasury note surged to 4.4%, the highest since last summer. Some energy stocks, like Exxon, traded near all-time highs.
Trump's Waning Influence Over Financial Markets Amid Iran War
Throughout his first term and into the outset of his second, Trump had a significant influence on financial markets, often whipsawing traders via frequent changes regarding tariff levels. However, the chain of events unleashed by Trump's decision to attack Iran has made a return to prewar market conditions virtually impossible in the short or even medium term, experts say. The disruption to flows of oil and gas has been so substantial that transport costs, and ultimately the price paid per barrel, are likely to stay elevated indefinitely.
"The market is looking beyond commentary from the administration. They actually want concrete details and a resolution. And actions speak louder than words, that's really present in [current] price action." - Adam Turnquist, chief strategist at LPL Financial investment group
Key Takeaways
- U.S. oil prices topped $100 a barrel and stocks plunged as Trump's power to reassure markets faded amid the Iran war.
- The S&P 500 closed down 1.7% on Friday, notching its fifth-straight weekly decline, and has fallen about 7% since the U.S. attacked Iran on Feb. 28.
- The Dow Jones Industrial Average fell 1.7% on Friday and has lost nearly 4,000 points since the start of the war, entering correction territory.
Frequently Asked Questions
Frequently Asked Questions
- How much has the S&P 500 fallen since the U.S. attacked Iran?
- The S&P 500 has declined about 7% since the U.S. attacked Iran on Feb. 28.
- How much has the Dow Jones Industrial Average fallen since the start of the Iran war?
- The Dow Jones Industrial Average has lost nearly 4,000 points since the start of the war and is now down more than 10% from its most recent high, entering correction territory.
- How high have U.S. oil prices risen amid the Iran war?
- U.S. oil prices topped $100 a barrel amid the ongoing war in Iran.
