US Stock Markets Extend Losses for Fourth Straight Week Amid Iran Conflict
US stock markets experienced another decline on Friday, marking the fourth consecutive week of market turbulence as investor concerns over the US-Israel war on Iran intensified. The conflict has triggered widespread repercussions, particularly on global oil prices, which have soared to multi-year highs.
Market Performance and Correction Territory
The Dow Jones Industrial Average plummeted by over 400 points on Friday, while the S&P 500 slipped 1.5% and the Nasdaq Composite dropped 2%. Notably, the Russell 2000 index, which tracks small-cap companies, entered correction territory after a 2.7% decline, falling more than 10% from its recent peak. This makes it the first major index to reach such a threshold this year.
Since late February, the Dow, S&P 500, and Nasdaq have declined approximately 7%, 5%, and 4.5%, respectively. Although these indices remain outside correction territory, the persistent dips highlight ongoing market instability driven by geopolitical tensions.
Oil Price Surge and Global Impact
Markets appear highly sensitive to skyrocketing oil prices, which affect various sectors from transportation to agriculture. Brent crude oil, the global benchmark, reached $107 per barrel by Friday afternoon, a sharp increase from the pre-conflict average of around $70. US crude oil similarly rose to $98 per barrel, up from an average of $64 before March.
At the pump, US gas prices averaged $3.88 per gallon, with states like California, Washington, and Hawaii seeing averages surge past $5. The Strait of Hormuz, a critical passage for a fifth of the world's oil supply, remains blocked in retaliation for US-Israel strikes against Iran. Both sides have targeted key energy infrastructure in the Gulf states and Iran, potentially causing years of repair delays.
Geopolitical Developments and Military Deployment
Recent escalations include Israel's attack on Iran's South Pars gasfield and Tehran's strike on Ras Laffan, the world's largest liquefied natural gas facility. In response, US President Donald Trump criticized NATO allies for refusing to assist in reopening the Strait of Hormuz, labeling them "cowards" in a social media post and reiterating a hardline stance against a ceasefire.
Additionally, the Pentagon deployed approximately 2,200 marines to the Middle East on Friday, though the White House has not detailed the specific missions involved. This military move underscores the deepening involvement and uncertainty surrounding the conflict.
The ongoing war continues to send shockwaves across global markets, with investors closely monitoring oil price fluctuations and geopolitical developments for signs of further economic disruption.
