Wall Street Rallies Amid Iran-US Tensions as Oil Prices Slip
NEW YORK — The US stock market closed strong on Monday 16 March 2026, whilst global oil prices corrected after a sharp rally the previous week.
The Dow Jones Industrial Average rose 387.94 points or 0.83 per cent to 46,946.41. The S&P 500 gained 1.01 per cent to 6,699.38 and the Nasdaq Composite climbed 1.22 per cent to 22,374.18.
The stock market gains were driven by technology companies. Meta shares rose more than 2 per cent following reports that the company was considering laying off more than 20 per cent of its workforce, though the company described the reports as speculative.
The rally came after the S&P 500 had posted declines for three consecutive weeks and closed at its lowest level for the year on Friday.
The energy market moved in the opposite direction. Global oil prices fell on Monday following sharp increases triggered by escalating tensions in the Middle East. Last week, Brent crude briefly surpassed USD 100 per barrel for the first time since 2022. The spike was triggered by disruptions to shipping traffic in the Strait of Hormuz, the strategic waterway through which approximately one-fifth of global oil supplies transit, following the outbreak of the Iran conflict.
Oil prices declined after US Treasury Secretary Scott Bessent stated that the US government was permitting Iranian oil tankers to transit the Strait of Hormuz.
Additionally, a Wall Street Journal report indicated that the United States would soon announce the formation of a coalition of nations to escort vessels through the strait to maintain the flow of energy trade.
However, remarks by President Donald Trump to journalists on Monday afternoon suggested the coalition was not yet fully formed. Trump urged other nations to participate in securing the shipping lane.
Following these remarks, oil prices briefly recovered from their lows, although they still closed lower at the end of the session.
On Friday, Trump ordered strikes against Iranian military assets on Kharg Island. Whilst the strikes did not target oil infrastructure, Trump stated that the United States could consider attacking Iranian energy facilities if the country continued to block the Strait of Hormuz.
Trump also told NBC over the weekend that Iran actually wanted to reach a deal, though the US government was not yet ready for negotiations.