Oil Prices Soar, Stocks Tumble as Iran War Impacts Global Economy
Published on Mar. 5, 2026
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Oil prices jumped and stocks fell on Thursday as the U.S.-Israel led war with Iran began to widen outside the Middle East, rattling financial markets and governments around the world. The jump in oil prices has raised inflation concerns globally, hitting both stock and bond markets as shipments of crude and natural gas from the Persian Gulf have slowed significantly.
Why it matters
The intertwined nature of the global economy with the oil-exporting nations of the Persian Gulf means the widening conflict is having far-reaching impacts. Higher oil prices passed onto consumers and businesses could dampen the U.S. economy, weighing on the stock market as investors try to assess how long the conflict could last.
The details
Brent crude futures rose about 5% to $85 a barrel, while West Texas Intermediate crossed above $80 a barrel, both at the highest levels since July 2024. The S&P 500 tumbled more than 1% in early afternoon trading, now in negative territory for the year. Government bond yields also continued to rise, with the 10-year Treasury yield hitting 4.14%, reflecting inflation concerns.
- Oil prices jumped on Thursday, March 5, 2026.
The players
Brent crude futures
The international benchmark for crude oil prices.
West Texas Intermediate
The domestic benchmark for crude oil prices in the United States.
S&P 500
A stock market index that tracks the performance of 500 large-cap U.S. publicly traded companies.
10-year Treasury yield
The yield on the 10-year U.S. government bond, which reflects borrowing costs for consumers and companies.
The takeaway
The widening conflict between the U.S., Israel, and Iran is having far-reaching economic impacts, with soaring oil prices and falling stock prices reflecting the global economy’s deep ties to the Persian Gulf region. This highlights the vulnerability of the U.S. and global economies to geopolitical tensions and disruptions in energy supplies.
