Wall Street Plunges Again, Iran-US-Israel Conflict as Trigger
Shares on Wall Street fell in volatile trading on Friday (20/3/2026) local time, triggered by the intensifying conflict between the US-Israel alliance and Iran, which shows no signs of abating, as well as a surge in global oil prices.
The Dow Jones Industrial Average index dropped 443.96 points or 0.96% to 45,577.47. The S&P 500 weakened by 1.51% to 6,506.48, while the Nasdaq Composite fell 2.01% to 21,647.61.
The small-cap Russell 2000 index dropped more than 2% and entered correction territory—that is, a 10% decline from its most recent peak.
At the day’s lowest point, the Dow and Nasdaq also briefly entered correction territory but closed just below the 10% decline threshold.
The Wall Street Journal reported, citing US officials, that the Pentagon is sending thousands of additional Marines to the Middle East. CBS News also mentioned “large-scale preparations” for deploying ground troops to Iran, citing various sources.
Selling pressure intensified in the afternoon after Reuters reported that Iraq had declared force majeure on all oil fields operated by foreign companies. This drove oil prices to surge, with Brent crude briefly breaking through $113 per barrel and WTI trading above $98 per barrel.
“If this is an escalation involving ground troops, we could face at least a few weeks ahead with market conditions like this: high oil and petrol prices; markets highly sensitive to every piece of news related to energy infrastructure in the region,” said Baird investment strategy analyst Ross Mayfield, as quoted by CNBC on Saturday (21/3/2026).
“Honestly, the stock market hasn’t fully corrected to reflect an event of this magnitude, so there’s still potential for further declines,” he added.
Meanwhile, concerns that inflation could rise again and that Federal Reserve rate cuts are becoming less likely pushed up US government bond yields on Friday, further pressuring the stock market.
The major indices recorded their fourth consecutive week of declines. The S&P 500 was relatively more resilient than the others, with a drop of around 7% from its recent peak.
“It’s not unusual in conditions like these, with high uncertainty, for a 10% correction to occur in an index,” said Art Hogan from B. Riley.
“Because the S&P is broader and more diversified, it’s likely to be the last to fall. But this also shows we’re in a very uncertain period,” he continued.
Selling pressure was widespread on Friday, with technology stocks—which had previously led the market rally—experiencing the largest declines. Nvidia and Tesla each fell around 3%. Almost no sector was safe, as rising yields also pressured the utilities sector, which is usually relatively stable.