US stock markets dip for fourth straight week over US-Israel war on Iran

• Brent crude oil prices surged to $107 per barrel by Friday, up from typical pre-conflict levels around $70, while US crude reached $98 per barrel from an average of $64, pushing US gas prices to $3.88 per gallon nationally and above $5 in California, Washington, and Hawaii.
• Iran's blockade of the Strait of Hormuz, through which a fifth of the world's oil supply passes, and mutual strikes on energy infrastructure including Iran's nuclear facilities and Qatar's Ras Laffan LNG facility have created long-term supply disruptions.
• The Pentagon deployed 2,200 marines to the Middle East on Friday as President Trump criticized NATO allies as 'cowards' for refusing to help reopen the Strait of Hormuz, stating no ceasefire would occur while 'obliterating the other side'.

Market Summary: US Stocks Decline Amid US-Israel Conflict with Iran

Key Market Movements

US equities posted losses for the fourth consecutive week ending March 19, 2026, as geopolitical tensions drove market turbulence. The Dow fell over 400 points Friday, while the S&P 500 declined 1.5% and the Nasdaq dropped 2%. The Russell 2000 small-cap index entered correction territory with a 2.7% decline, falling more than 10% from recent highs—the first major index to do so this year.

Since February 28, major indices have declined significantly: Dow -7%, S&P 500 -5%, and Nasdaq -4.5%.

Energy Market Impact

Oil prices surged dramatically due to conflict disrupting critical supply routes. Brent crude reached $107 per barrel (from typical $70), while US crude hit $98 per barrel (from $64 average). The Strait of Hormuz, which normally handles one-fifth of global oil supply, remains blocked in retaliation for US-Israel strikes against Iran.

US gasoline prices averaged $3.88 per gallon nationally, exceeding $5 in California, Washington, and Hawaii.

Conflict Developments

Both sides have targeted key energy infrastructure that could take years to repair. Iran struck Ras Laffan, the world's largest LNG facility, after Israel attacked Iranian facilities. The Pentagon deployed 2,200 marines to the region Friday, though specific missions remain unspecified.

Market Implications

Elevated oil prices are affecting broad sectors including transportation, shipping, commercial aviation, and agriculture. Small-cap companies appear most vulnerable, as evidenced by the Russell 2000's correction. Markets remain highly sensitive to energy price fluctuations and conflict escalation.