Wall Street Declines Following Iranian Attack as Oil Prices Near $100 per Barrel
NEW YORK — Wall Street experienced a sharp decline on 12 March 2026 following heightened geopolitical tensions in the Middle East, which drove global crude oil prices towards the psychological $100 per barrel level.
The Dow Jones Industrial Average fell 739.42 points or 1.56 per cent to close at 46,677.85, whilst the S&P 500 dropped 103.22 points or 1.52 per cent to 6,672.58. The Nasdaq Composite slid 404.15 points or 1.78 per cent to 22,311.98.
Within the 11 major sectors comprising the S&P 500 index, the energy sector emerged as the sole gainer with a notable increase of approximately 1 per cent. Conversely, the industrial sector recorded the steepest decline, falling 2.5 per cent.
Geopolitical tensions escalated after Iran’s Supreme Leader Ayatollah Mojtaba Khamenei reaffirmed his commitment to maintaining closure of the Strait of Hormuz, the strategically vital shipping lane responsible for distributing roughly one-fifth of the world’s oil supply.
In line with these mounting risks, WTI crude oil futures for next month’s delivery surged 9.7 per cent, whilst Brent crude advanced 9.2 per cent to approach the $100 per barrel mark.
The Trump administration reportedly signalled to domestic oil companies and shipping firms to prepare for potential Jones Act exemptions aimed at moderating fuel price increases.
Ryan Detrick, Market Strategist at Carson Group, observed that market participants were adopting defensive positions amid escalating geopolitical uncertainty. “There is widespread recognition that resolution of Middle Eastern conflicts is being postponed indefinitely. This creates a mentality of ‘sell first, ask questions later’. Practically no sector appears safe except energy,” Detrick stated.
Whilst the latest inflation data suggests price pressures remain relatively controlled, the recent surge in crude prices resulting from conflicts over the past fortnight has not yet fully manifested in economic data.
Markets broadly anticipate the Federal Reserve will maintain its benchmark interest rate. However, investors will closely monitor the central bank’s latest economic projections, particularly regarding inflation estimates going forward.
“Rising oil prices mean expectations for Federal Reserve rate cuts by year’s end have diminished considerably,” Detrick said.