US-Iran Tensions Heat Up Again, Wall Street Closes Weakly, Ending 3-Week Rally

NEW YORK, KOMPAS.com - The United States stock market, or Wall Street, closed slightly lower on Monday (20/4/2026) trading, amid the renewed escalation of geopolitical tensions between the US and Iran, which triggered market concerns.

This decline also ended the three-week consecutive strengthening trend in Wall Street’s three major indices.

Quoting Reuters on Tuesday (21/4/2026), a senior Iranian official stated that Iran is considering attending peace talks with the United States in Pakistan, following Islamabad’s efforts to end the US blockade on Iran’s ports.

However, another source said that US Vice President JD Vance is still in the United States and denies reports that he is heading to Pakistan for talks.

Oil prices also surged significantly, with US crude rising 6.87% to $89.61 per barrel, while Brent strengthened 5.64% to $95.48 per barrel. This increase also propelled the energy sector within the S&P 500 index.

“Weekend news regarding the re-closure of the strait or the Iranian ship incident has slightly delayed expectations of full reopening, although the chance of talks remains open in the near term,” said Tom Hainlin, National Investment Strategist at U.S. Bank Wealth Management.

He noted that the market is currently in the midst of first-quarter earnings season, so investors are beginning to assess whether geopolitical conflicts are impacting the real economy. So far, the banking sector shows that consumer credit conditions and spending remain relatively stable.

The communications sector was the most pressured, triggered by a 2.56% drop in Meta shares, which ended a nine-day consecutive rally. Netflix shares also fell 2.55% and have weakened around 12% since releasing its financial report and the resignation of co-founder Reed Hastings last week.

The CBOE volatility index (VIX), known as the market fear gauge, rose 1.37 points to 18.85 after previously declining for eight consecutive sessions.