Equities declined while global oil valuation found a plateau at $100 per barrel for the first time since 2022, as the de facto sealing of the Strait of Hormuz continued to rattle financial areas.
Major US stock benchmarks concluded trading down more than 1.5%, extending recent erratic movements. The Dow shed 739 points, a drop of 1.56%. The S&P 500 fell by 1.52%, and the tech-heavy Nasdaq Composite retreated by 1.78%, as the military conflict with Iran intensified worries regarding escalating energy expenses and disruptions to the worldwide economy.
US crude futures ascended by 9.72%, settling at $95.73 per barrel. Brent crude, the international oil benchmark, climbed 9.22%, closing at $100.46 a barrel. This marks the initial occasion since August 2022 that Brent has stabilized above the $100 per barrel threshold.
Oil valuations surged after the head of Iranian state television delivered a proclamation attributed to the new Supreme Leader of Iran, Mojtaba Khamenei, asserting that the critical Strait of Hormuz would remain closed as a “lever of pressure.” The message further stipulated that all American installations in the vicinity “will be targeted” unless they cease operations.
Smoke billows following overnight aerial assaults on petroleum storage facilities on March 8, 2026, in Tehran, Iran. The United States and Israel proceeded with a joint offensive against Iran that commenced on February 28th. Tehran retaliated by launching barrages of missiles and drones at Israel, alongside striking US allies throughout the region.
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The Strait of Hormuz, an essential maritime passage off Iran’s coast channeling 20% of the world’s oil consumption, has been effectively blocked since the war began. This development has triggered a sharp spike in petroleum costs and cast a pall over stock market outlooks globally.
“The implicit blockade of the Strait of Hormuz remains the primary driver for global markets,” noted Felix Veissena-Poirier, Chief Strategist at BCA Research, in a memorandum.
Oil prices experienced significant fluctuation this week. Brent briefly approached $120 early Monday, settled at $87.80 on Tuesday, before sharply rising through Wednesday and Thursday to regain the $100 per barrel mark.
Concerns surrounding the Strait of Hormuz pushed oil prices upward on Thursday, despite the International Energy Agency’s agreement on Wednesday to release 400 million barrels of crude onto the international market in an effort to alleviate pricing anxieties.
The Strait of Hormuz has become a focal point of tension, with US officials demanding its reopening while the Iranian regime redoubles efforts to prevent normal transit.
US Energy Secretary Chris Wright stated on Thursday that the strait must eventually reopen as the US continues military operations within Iran.
“The Strait of Hormuz now must be, and will be, reopened,” Wright commented during an appearance on “CNN News Central.”
Meanwhile, the IEA stated in its monthly oil report on Thursday that the conflict in the Middle East is “creating the largest supply disruption in the history of the global oil market.”
Yields on US Treasury securities climbed as investors reassessed projections for potentially elevated inflation stemming from soaring energy prices. The yield on the 10-year note advanced to 4.26%, achieving its highest level since the start of February.
The rise in Treasury yields impacted mortgage interest rates: the average rate for a standard 30-year fixed mortgage reached 6.11% for the week ending March 12th, according to a survey of lenders by Freddie Mac released Thursday. This represented the most substantial weekly increase since April, when President Donald Trump’s “Liberation Day” tariffs sparked a sharp rise in bond yields.
The US Dollar strengthened against other major currencies, benefiting from a flight to safety. The US Dollar Index climbed 0.5%, reaching its highest valuation this year.
Wall Street’s fear gauge, the VIX, rose 10%, illustrating amplified market instability. CNN’s Fear & Greed Index plunged into “Extreme Fear.” Brent crude prices have escalated by nearly 38% since the war began. US oil prices have climbed by almost 43%.
“As long as oil remains the main market engine, events related to the reopening of the Strait of Hormuz function either as an accelerator or a brake for risk appetite,” stated Adam Turnquist, Chief Technical Strategist at LPL Financial, in a note.
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