Traders work on the floor of the New York Stock Exchange (NYSE), March 27, 2026, in New York. (Spencer Platt/Getty Images)
(NEW YORK) — Stocks closed significantly lower on Friday as the U.S.-Israeli war with Iran showed little sign of an imminent resolution that would end one of the worst global oil shocks in decades.
The Dow Jones Industrial Average plunged 790 points, or 1.7%, while the S&P 500 fell 1.6%. The tech-heavy Nasdaq dropped 2.1%.
The session on Friday marked the end of a woeful week for the major stock indexes. The Dow declined 1% this week, while the S&P 500 fell 2%. The Nasdaq decreased 3%.
Late Thursday, President Donald Trump postponed U.S. attacks on power plants in Iran in an apparent effort to avoid escalation of the Middle East conflict.
In a post on social media on Thursday, Trump said he was “pausing the period of Energy Plant destruction” until April 6.
In the event of such an attack, Iran has said it would carry out strikes against energy infrastructure in neighboring countries, according to Iran’s Fars News Agency state media.
Wall Street appeared to find little solace in the reprieve from large-scale tit-for-tat attacks on infrastructure.
Iran continues to blockade the Strait of Hormuz, a critical waterway for oil delivery. The strait facilitates the transport of about one-fifth of the global supply of crude oil and natural gas.
Global oil prices stood at about $113 a barrel on Friday, marking a staggering 61% rise since war with Iran began a month ago.
Fatih Birol, the executive director of the International Energy Agency (IEA), earlier this week said the current oil crisis had surpassed the combined effect of worldwide energy shocks in the 1970s.
The global economy faces a “major, major threat,” Birol said at an event in Canberra, Australia, noting that no country would be “immune to the effects of this crisis if it continues to go in this direction.”
U.S. Treasury yields climbed on Thursday, suggesting concern about economic instability and inflation stemming from the Iran war.
The yield on a 10-year Treasury bond, or the amount paid to a bondholder annually, stands at about 4.45%, marking a nearly half-percentage point jump from a month earlier.
On Friday, bond yields soared close to levels reached in the aftermath of President Donald Trump’s “Liberation Day” tariffs last April, when the 10-year Treasury yield peaked at around 4.5%.
Since bonds pay a given investor a fixed amount each year, the specter of inflation risks higher prices that would eat away at those annual payouts.
In turn, bonds often become less attractive in response to economic turmoil. When demand falls, bond yields rise.
Shoppers visit the Tajrish Bazaar, one of Tehranâs main shopping areas. (Fatemeh Bahrami/Anadolu via Getty Images)
(NEW YORK) — A threat of U.S. attacks on power plants in Iran continues to loom over the Middle East conflict, even after Trump pushed back a self-imposed deadline for the second time.
In a post on social media on Thursday, Trump said he was “pausing the period of Energy Plant destruction” until April 6.
In the event of such an attack, Iran has said it would carry out tit-for-tat strikes against energy infrastructure in neighboring countries, according to Iran’s Fars News Agency state media.
The threatened escalation risks a humanitarian crisis for tens of millions of people in the region, potentially restricting their access to basic essentials such as electricity, food, water and health care, some analysts told ABC News.
Distress could spread to countries beyond the Gulf if dire conditions prompt residents to flee across borders and infrastructure damage worsens a global oil shock, analysts said.
“This will be bad for everybody,” Mushfiq Mobarak, a professor of economics at Yale University, told ABC News. “The most damaging effects — the largest welfare costs — will be on Iranian civilians.”
On March 21, Trump vowed to “obliterate” power plants in Iran within 48 hours unless the country eases its blockade of the Strait of Hormuz. Before the deadline arrived on Monday night in Washington, D.C., Trump posted on social media that he was postponing the ultimatum for five days, claiming “productive conversations” had been held between the U.S. and Iran.
On Thursday — one day before the new deadline was set to arrive — Trump said he would postpone the deadline for an additional 10 days.
Negotiations between the U.S. and Iran are “ongoing,” Trump claimed. Iranian officials have denied that the country is in talks with the U.S.
Meanwhile, Iran has pledged to retaliate against civilian infrastructure in nearby countries in response to an attack on its energy sites.
“Immediately after the power plants and infrastructure in our country are targeted, the critical infrastructure, energy infrastructure, and oil facilities throughout the region will be considered legitimate targets,” Iranian parliament speaker Mohammad Bagher Qalibaf said in a post on X on Sunday.
Natural gas supplies roughly 79% of electricity used in Iran, according to the International Energy Administration, a global energy policy group based in Paris, France.
The majority of the nation’s natural gas is supplied by South Pars, the largest natural gas field in the world. An Israeli attack on South Pars last week threatened severe impact in Iran and neighboring Gulf states, analysts previously told ABC News.
Potential U.S. attacks on energy infrastructure could cut off electricity access for many of the 92 million people in Iran, while at the same time discontinuing power for critical institutions like hospitals, Mobarak said.
“If hospitals lose power, that’s very dangerous,” Mobarak said.
The health care impact would come as some hospitals in the region face perilous conditions, according to the World Health Organization (WHO). Health care facilities faced a total of 13 attacks as of March 5, the WHO said, voicing concern about “health systems and lives at risk in the region.”
Attacks on civilian infrastructure in Iran could also worsen food shortages and price increases, Michael Werz, a senior fellow at the Council on Foreign Relations, told ABC News. Annual food inflation in Iran stood at 72% in December, before the war began, The Wall Street Journal reported.
Any further deterioration of food access, Werz said, could have a “massive impact.”
Potential Iranian retaliation against civilian sites threatens desperate conditions for millions of people in nearby countries Oman, Qatar, Kuwait, Saudi Arabia, the United Arab Emirates (UAE), Iraq and Israel, some analysts said.
Those countries depend in large part on water desalination plants for drinking water due to arid conditions in the region, making those facilities a major potential vulnerability, Ginger Matchett, assistant director with the GeoStrategy Initiative at the Atlantic Council’s Scowcroft Center for Strategy and Security, said in a blog post.
Desalinated drinking water accounts for at least 90% of the supply in Kuwait, Bahrain and Qatar, while Israel and Oman each depend on such plants for 80% of their drinking water, Matchett said.
“If Iran successfully destroyed the Gulf’s desalination infrastructure, then the consequences could be devastating,” Matchett added.
In early March, desalination plants in Iran and Bahrain were targeted in the fighting, and missile-related damage has also been reported at sites in Kuwait and the UAE.
Potential retaliatory attacks on oil and gas sites in the region also threaten to deepen and prolong a global oil crisis, driving up fuel costs and raising prices for essential goods worldwide, some analysts said.
Global oil prices skyrocketed in recent weeks after the war prompted closure of the Strait of Hormuz, a critical waterway for global oil and natural gas delivery. Consumers have held out hope for a reopening of the strait and a relatively speedy recovery, but facility repairs could stretch on for months and choke off fuel supply in the meantime.
Qatari authorities said last week that Iranian ballistic missile attacks caused fires and “extensive damage” at the Ras Laffan terminal, which carries about one-fifth of the global supply of liquid natural gas. An Iranian missile attack struck oil refineries last week in Haifa, Israel, where fire brigades extinguished a fire that broke out at the site, Israel Fire and Rescue said.
The Philippines has declared a national energy emergency in response to the U.S.-Israeli war with Iran, while South Korea has called on residents to ride bicycles for short trips and reduce the length of showers. Thailand and Vietnam have also asked citizens to take steps to curtail energy use.
Roughly 80% of the oil that typically passes through the strait is bound for Asian markets, according to the IEA. Still, the oil shock will raise gas prices worldwide, since energy is sold on a global market, Mobarak said.
“This will have effects for gas consumers across the world,” he added.
Photo taken on Aug. 12, 2024 shows the trading floor of the New York Stock Exchange NYSE in New York, the United States. (Liu Yanan/Xinhua via Getty Images)
(NEW YORK) — The Dow Jones Industrial average closed up more than 600 points on Monday after President Donald Trump claimed “productive conversations” had been held between the United States and Iran.
The major stock indexes each soared more than 2% in early trading but gave up some of those gains as a flurry of headlines about the U.S.-Israeli war with Iran elicited price fluctuations.
The peace talks — which Iranian officials denied — sent the price of oil plunging on Monday on hopes that negotiations could reopen the Strait of Hormuz and end a weeks-long global energy shock.
The Dow closed up 631 points or 1.3%, while the S&P 500 jumped 1.1%. The tech-heavy Nasdaq increased 1.3%.
Each of the indexes remained below where it stood before the U.S.-Israeli war with Iran began on Feb. 28.
A selloff cascaded across global markets in recent weeks as stockholders feared economic fallout from a potentially prolonged bout of elevated oil prices.
Global oil prices plunged more than 10% on Monday after Trump made his claim about ongoing negotiations with Iran. Still, the price of oil stood above $100 a barrel, marking a steep rise since the outbreak of war.
Trump, after postponing U.S. strikes on Iran’s energy infrastructure citing new negotiations with Tehran, said on Monday that talks will continue and that there are “major points of agreement.”
According to Iranian state media, Iran’s Parliament Speaker Mohammad Qalibaf said, “no talks with the U.S. have taken place; reports claiming otherwise are fake news aimed at influencing financial and oil markets and distracting from the challenges facing the U.S. and Israel.”
Photo taken on Aug. 12, 2024 shows the trading floor of the New York Stock Exchange NYSE in New York, the United States. (Liu Yanan/Xinhua via Getty Images)
(NEW YORK) — The Dow Jones Industrial average soared more than 1,000 points on Monday after President Donald Trump claimed “productive conversations” had been held between the U.S. and Iran.
The major stock indexes shed some of the morning’s gains by midday as a flurry of headlines about the Middle East conflict appeared to elicit volatile price fluctuations.
The peace talks — which Iranian officials denied — sent the price of oil plunging on Monday on hopes that negotiations could reopen the Strait of Hormuz and end a weeks-long global energy shock.
The Dow surged 700 points or 1.5%, while the S&P 500 jumped 1.2%. The tech-heavy Nasdaq increased 1.3%.
This is a developing story. Please check back for updates.
A picture of Qatar Energy’s operating facilities on March 3, 2026 in Ras Laffan Industrial City, Qatar. Qatar Energy announced a complete halt to liquefied natural gas (LNG) production at its Ras Laffan and Mesaieed facilities on March 2, 2026, after Iranian attacks targeted energy facilities. (Photo by Getty Images)
(NEW YORK) — Iranian attacks on significant energy infrastructure and refineries in several Gulf countries pushed oil and gas prices higher in volatile trading on Thursday.
Brent crude oil prices, a benchmark for global trading, climbed by about 6%, hitting $116 per barrel for contracts to purchase oil in May.
The benchmark for European gas also surged by about 15% after Iran on Wednesday released retaliatory strikes targeting energy sites in several Gulf countries.
An Iranian drone struck a Saudi Aramco refinery in Yanbu, on the Red Sea, on Thursday, according to the Saudi Ministry of Defense, which said the extent of the damage was being assessed. That refinery is a joint venture between Aramco and the U.S.-based Exxon Mobil Corp.
Kuwait also on Thursday said its Mina Al-Ahmadi Refinery, which is run by the state-owned National Petroleum Company, had been struck by a drone. There was a “limited” fire at the facility, according to the official Kuwait News Agency.
Qatari authorities said on Wednesday that Iranian ballistic missile attacks caused fires and “extensive damage” at the Ras Laffan terminal, which carries about one-fifth of the global supply of liquid natural gas. Qatar Energy, which runs the terminal, has said on March 2 that it would bring liquefied natural gas production at Ras Laffan to a halt.
Iran’s Islamic Revolutionary Guard Corps had issued warnings for several Gulf energy production sites, including the refinery in Yanbu, after Wednesday’s Israeli strikes on the South Pars Gas Field, the largest in Iran.
Those attacks added uncertainty to a market already on edge, as the overall conflict and the near-closure of the vital Strait of Hormuz by Iran has sent key energy prices higher.
The Dutch Title Transfer Facility, which is widely seen as the European benchmark for natural gas, saw forward-looking contracts for next month climb about 15% in midmorning trading on Thursday. Trading was volatile, and those contracts had registered intraday gains as high as about 30% in morning trading.
Since the conflict began on Feb. 28, with U.S. and Israeli strikes on Tehran, the TTF benchmark’s rate has about doubled. Intraday prices on Thursday hovered above about 60 euro per MWh, while those LNG contracts had traded below 30 euro per MWh between mid-November and mid-January.
Brent crude had been trading prior to the conflict near $70 a barrel. Prices has previously peaked at about $120 a barrel on March 9.
A television station broadcasts the Federal Reserve’s decision to hold rates after a Federal Open Market Committee meeting on the floor of the New York Stock Exchange. (Michael Nagle/Bloomberg via Getty Images)
(NEW YORK) — The Federal Reserve held interest rates steady on Wednesday at its first meeting since the U.S.-Israeli war with Iran drove up gasoline prices and risked a wider bout of inflation.
The central bank’s move marked the second consecutive time it has opted to maintain interest rates at current levels since the outset of 2026. Before that, the Fed cut interest rates a quarter-point three straight times. The decision on Wednesday matched market expectations.
“The implications of developments in the Middle East for the U.S. economy are uncertain,” the Federal Open Market Committee (FOMC), a policymaking body at the Fed, said in a statement on Wednesday.
Elevated price increases have coincided with a slowdown of economic growth, threatening to intensify an economic double-whammy known as “stagflation,” which poses difficulty for the Fed.
If the Fed opts to lower borrowing costs, it could spur growth but risk higher inflation. On the other hand, the choice to raise interest rates may slow price increases but raises the likelihood of a cooldown in economic performance.
The benchmark rate stands at a level between 3.5% and 3.75%. That figure marks a significant drop from a recent peak attained in 2023, but borrowing costs remain well above a 0% rate established at the outset of the COVID-19 pandemic.
A lackluster jobs report last week showed the U.S. economy lost 92,000 jobs in February, which marked a reversal of fortunes for the labor market and erased most of the job gains recorded in 2026.
The unemployment rate ticked up from 4.3% in January to 4.4% in February, the BLS said. Unemployment remains low by historical standards.
A revised government report last week on gross domestic product (GDP) showed the economy grew at a sluggish annualized pace of 0.7% over the final three months of 2025.
Those economic headwinds helped set the conditions before the outbreak of war with Iran, which spiked oil prices and risked price increases for a host of diesel-fuel transported goods.
U.S. crude oil prices rose to about $97 per barrel on Wednesday, marking a surge of more than 50% since a month earlier.
Since the military conflict began, U.S. gas prices have gone up 86 cents to an average of $3.84 per gallon as of Wednesday, according to AAA.
The rate decision on Wednesday marked the first such move since a federal judge blocked Justice Department subpoenas to the Federal Reserve’s Board of Governors after determining the government “produced essentially zero evidence” to support a criminal investigation of Fed Chair Jerome Powell, according to an unsealed court opinion.
“A mountain of evidence suggests that the Government served these subpoenas on the Board to pressure its Chair into voting for lower interest rates or resigning,” U.S. District Judge James Boasberg said in his opinion on Friday.
Acting U.S. Attorney Jeanine Pirro blasted Boasberg as an “activist” judge and pledged to appeal his ruling.
ABC News’ Alexander Mallin, Allison Pecorin, and Jack Date contributed to this report.
Traders work on the floor of the New York Stock Exchange during morning trading on March 10, 2026 in New York City. Stocks continued to slide at the opening due to the war in Iran and oil prices hovering around $90 per barrel. (Photo by Michael M. Santiago/Getty Images)
(NEW YORK) — The Dow Jones Industrial Average closed down more than 700 points on Thursday as global oil prices spiked above $100 a barrel.
The Dow plunged 730 points, or 1.5%, while the S&P 500 dropped 1.5%. The tech-heavy Nasdaq declined 1.7%.
A selloff hit Wall Street as traders feared economic fallout from a potentially prolonged bout of elevated oil prices amid the U.S.-Israeli war with Iran.
Oil markets are suffering a major supply shortage due to an Iranian blockade of the Strait of Hormuz, a trading route that facilitates the transport of about one-fifth of the global oil supply.
Global crude oil prices hovered at about $101 per barrel on Thursday, which marked a 9% increase from a day earlier. Oil prices have soared 49% over the past month.
Prices at the pump have also soared. U.S. gasoline prices jumped to $3.59 on Thursday from $2.94 a month earlier, AAA data showed.
Indexes fell worldwide on Thursday as the jump in oil prices rippled through global markets. Tokyo’s Nikkei 225 index dropped 1.2%, while pan-European STOXX 600 index slipped 0.5%.
In recent days, President Donald Trump has voiced mixed messages about how the White House may address oil prices and related cost woes.
Trump has indicated the war may end soon, but he has also threatened to escalate the conflict if Iran continues to impede tanker traffic in the Strait of Hormuz.
“The United States is the largest Oil Producer in the World, by far, so when oil prices go up, we make a lot of money. BUT, of far greater interest and importance to me, as President, is stoping an evil Empire, Iran, from having Nuclear Weapons, and destroying the Middle East and, indeed, the World,” Trump said.
In a social media post on Thursday morning, Trump downplayed the rising oil prices, saying they would financially benefit the U.S.
In his first purported message, Mojtaba Khamenei, the newly installed supreme leader of Iran, on Thursday addressed the importance of the Strait of Hormuz.
Khamenei said the closure of the shipping route must be sustained as a “tool to pressure the enemy,” according to CNBC.
This is a developing story. Please check back for updates.
raders work on the floor of the New York Stock Exchange during morning trading on March 10, 2026 in New York City. Stocks continued to slide at the opening due to the war in Iran and oil prices hovering around $90 per barrel. (Photo by Michael M. Santiago/Getty Images)
(NEW YORK) — Oil prices surged and stocks tumbled worldwide in early trading on Thursday as Iran escalated shipping attacks in a critical tanker route.
Global crude spiked above $100 a barrel on Thursday before settling slightly below that key benchmark. The rise in oil prices defied a U.S. effort hours earlier to reassure markets with an announcement of the second-largest ever release from the nation’s petroleum reserve.
A selloff hit Wall Street as traders feared economic fallout from a potentially prolonged bout of elevated oil prices.
The Dow Jones Industrial Average fell 550 points, or 1.1%, while the S&P 500 dropped 0.8%. The tech-heavy Nasdaq declined 0.8%.
Oil markets are suffering a major supply shortage due to the near-closure of the Strait of Hormuz, a trading route that facilitates the transport of about one-fifth of the global oil supply.
This is a developing story. Please check back for updates.
President Donald J. Trump disembarks Marine One at Valley International Airport in Harlingen, Texas Tuesday, Jan. 12, 2021, and boards Air Force One en route to Joint Base Andrews, Md. (Official White House Photo by Shealah Craighead. Via Flickr)
(NEW YORK) — Inflation held steady in February, maintaining price increases at elevated levels in the weeks before the U.S.-Israeli war with Iran sent gasoline prices surging and stoked heightened concern about affordability. The reading matched economists’ expectations.
Prices rose 2.4% in February compared to a year earlier, leaving the inflation rate unchanged from January, U.S. Bureau of Labor Statistics data showed. Inflation stands slightly higher than the Federal Reserve’s target rate of 2%.
Oil prices have surged since the war with Iran late last month, ratcheting up costs for gasoline and airfare, and threatening to push up prices for a vast array of goods reliant on diesel-fuel transport, some analysts previously told ABC News.
Fuel prices rose in February as traders anticipated the possible outbreak of war with Iran, government data showed. Gasoline prices climbed more than 3% in February from a month earlier, according to the inflation report.
Food prices climbed 3.1% in February compared to a year earlier, registering above overall inflation and maintaining their pace from the previous month.
A lackluster jobs report last week showed the U.S. economy lost 92,000 jobs in February, which marked a reversal of fortunes for the labor market and erased most of the job gains recorded in 2026.
The unemployment rate ticked up from 4.3% in January to 4.4% in February, the BLS said. Unemployment remains low by historical standards.
Sluggish hiring has coincided with elevated inflation, threatening a period of “stagflation.”
Those economic headwinds helped set the conditions before the outbreak of war with Iran, which spiked oil prices and risked price increases for a host of diesel-fuel transported goods.
U.S. crude oil prices hovered at about $86 per barrel on Tuesday, surging more than 30% since a month earlier.
The average price of a gallon of gasoline in the U.S. soared to $3.53 on Tuesday from $2.92 a month prior, AAA data showed.
Still, the overall economic picture remains mixed.
A government report in February on gross domestic product (GDP) showed the economy grew at a tepid annualized pace of 1.4% over the final three months of 2025. That reading indicated a dramatic cooldown from the strong annualized growth of 4.4% recorded in the previous quarter, U.S. Commerce Department data showed.
The Iran war threatens to slow U.S. economic growth since oil-driven price increases could weigh on consumers and businesses, analysts previously told ABC News.
The potential combination of higher inflation and slower growth could also pose a challenge for the Fed, putting pressure on both sides of its dual mandate to manage prices and maintain maximum employment.
If the Fed opts to lower borrowing costs, it could spur growth but risk higher inflation. On the other hand, the choice to raise interest rates may slow price increases but risks a cooldown of economic performance.
The central bank held interest rates steady at its most recent meeting in January, ending a string of three consecutive quarter-point rate cuts. Policymakers will make their next interest-rate decision on March 18.
President Donald J. Trump disembarks Marine One at Valley International Airport in Harlingen, Texas Tuesday, Jan. 12, 2021, and boards Air Force One en route to Joint Base Andrews, Md. (Official White House Photo by Shealah Craighead. Via Flickr)
(NEW YORK) — An inflation report to be released on Wednesday will provide the latest measure of price increases as the U.S.-Israeli war with Iran drives up gasoline costs and renews concerns about affordability.
The fresh data — which is set to detail prices in February — will show the cost burden borne by households weeks before the outbreak of war.
Economists expect prices to have increased 2.4% in February from a year earlier, which would leave the inflation rate unchanged from January. Inflation stands slightly higher than the Federal Reserve’s target rate of 2%.
A lackluster jobs report last week showed the U.S. economy lost 92,000 jobs in February, which marked a reversal of fortunes for the labor market and erased most of the job gains recorded in 2026.
The unemployment rate ticked up from 4.3% in January to 4.4% in February, the BLS said. Unemployment remains low by historical standards.
Sluggish hiring has coincided with elevated inflation, threatening a period of “stagflation.”
Those economic headwinds helped set the conditions before the outbreak of war with Iran, which spiked oil prices and risked price increases for a host of diesel-fuel transported goods.
U.S. crude oil prices hovered at about $86 per barrel on Tuesday, surging more than 30% since a month earlier.
The average price of a gallon of gasoline in the U.S. soared to $3.53 on Tuesday from $2.92 a month prior, AAA data showed.
Still, the overall economic picture remains mixed.
A government report in February on gross domestic product (GDP) showed the economy grew at a tepid annualized pace of 1.4% over the final three months of 2025. That reading indicated a dramatic cooldown from the strong annualized growth of 4.4% recorded in the previous quarter, U.S. Commerce Department data showed.
The Iran war threatens to slow U.S. economic growth since oil-driven price increases could weigh on consumers and businesses, analysts previously told ABC News.
The potential combination of higher inflation and slower growth could also pose a challenge for the Fed, putting pressure on both sides of its dual mandate to manage prices and maintain maximum employment.
If the Fed opts to lower borrowing costs, it could spur growth but risk higher inflation. On the other hand, the choice to raise interest rates may slow price increases but risks a cooldown of economic performance.
The central bank held interest rates steady at its most recent meeting in January, ending a string of three consecutive quarter-point rate cuts. Policymakers will make their next interest-rate decision on March 18.
