US Stocks Slip As Iran War Pushes Oil/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stock markets slipped Friday as rising oil prices tied to the Iran war continued to pressure investors. Oil surged above $100 per barrel amid disruptions in the Strait of Hormuz, raising fears of inflation and economic slowdown. Mixed economic reports on consumer spending, job openings and GDP growth added to market uncertainty.
US Stocks Fall Amid Iran War Oil Surge Quick Looks
- Major U.S. stock indexes traded lower in volatile Friday markets.
- The S&P 500 fell about 0.2%, while the Nasdaq dropped 0.4%.
- Oil prices surged above $100 per barrel due to the Iran conflict.
- Disruptions in the Strait of Hormuz threaten global oil supplies.
- Inflation pressures are rising as energy prices climb.
- U.S. economic data showed slower GDP growth and mixed labor signals.
- Cryptocurrency prices rose, with Bitcoin jumping nearly 5%.
Deep Look
US Stocks Fall as Iran War Keeps Pressure on Oil
U.S. stock markets struggled for direction Friday as investors weighed the economic impact of rising oil prices linked to the ongoing conflict involving Iran.
The S&P 500 slipped 0.2% in late morning trading after earlier gaining nearly 1%. The Dow Jones Industrial Average edged up slightly by about 34 points, while the Nasdaq Composite fell 0.4%.
The choppy trading session continued a volatile week for Wall Street. Major indexes are now on track to record their third consecutive weekly decline following sharp swings earlier in the week.
Investors remain focused on the economic risks tied to soaring energy prices and growing geopolitical tensions.
Oil Prices Surge Above $100
Energy markets have experienced significant turbulence since the conflict involving Iran escalated.
The price of Brent crude, the global benchmark for oil, remained above $100 per barrel, although it slipped slightly below Thursday’s closing level of $100.46.
Brent prices have surged more than 37% in the past month.
Meanwhile, U.S. crude oil rose slightly to about $95.83 per barrel, climbing roughly 43% this month.
The spike in oil prices has been driven largely by disruptions to shipping routes through the Strait of Hormuz, a narrow waterway that typically carries about one-fifth of the world’s oil supply.
Iran’s actions in the region have effectively halted cargo traffic through the strait, forcing some oil producers to reduce output because shipments cannot reach global markets.
Inflation Risks Grow
Analysts warn that if the conflict continues to disrupt oil production and transportation across the Persian Gulf, it could fuel another surge in inflation worldwide.
Some economists say oil prices could quickly climb to $150 per barrel if the Strait of Hormuz remains closed for an extended period.
Although the International Energy Agency announced plans to release a record 400 million barrels of oil from emergency reserves, some market observers believe the move may provide only temporary relief.
The Biden administration has also taken steps aimed at easing global supply pressures. Earlier this week, the U.S. granted temporary permission for India to resume purchases of Russian oil.
Economic Data Adds To Market Uncertainty
Investors also digested several new economic reports released Friday.
Data from the Commerce Department showed inflation rose slightly in January, even before oil and gas prices surged due to the Iran conflict.
Prices increased 2.8% compared with a year earlier, while core inflation, which excludes food and energy, climbed to 3.1%, its highest level in nearly two years.
At the same time, consumer spending increased 0.4% in January, matching growth in household income.
Consumer spending accounts for roughly two-thirds of U.S. economic activity, making it a key indicator of the economy’s health.
Consumer Sentiment Weakens
A separate survey from the University of Michigan showed that consumer sentiment slipped to its lowest level of the year.
Rising gasoline prices following the start of the Iran conflict were a major factor weighing on public confidence.
Meanwhile, the Labor Department reported that U.S. job openings rose to nearly 7 million in January, surpassing economists’ expectations.
Despite the increase in job postings, the broader labor market remains weak.
Earlier data showed employers cut 92,000 jobs last month, highlighting continued uncertainty in hiring.
Slowing Economic Growth
Wall Street also reviewed updated data on overall economic growth.
The U.S. economy expanded at only 0.7% annual growth in the fourth quarter of 2025, according to the Commerce Department. The figure represented a significant downgrade from earlier estimates and marked a sharp slowdown from 4.4% growth in the previous quarter.
Economists say the slowdown had already raised concerns before geopolitical tensions pushed energy prices higher.
“GDP and the job market have been expanding, but the rate of change has been slowing,” said Chris Zaccarelli, chief investment officer at Northlight Asset Management.
He noted that those concerns existed even before the Middle East conflict intensified.
Corporate Movers
Several major companies saw notable stock movements during Friday’s trading.
Financial and health care companies helped offset some broader market losses. JPMorgan Chase gained about 1.1%, while pharmaceutical giant Eli Lilly rose 1.6%.
However, some companies posted steep declines.
Software maker Adobe dropped 6%, despite reporting stronger-than-expected earnings. Investors were disappointed with the company’s forecast for future subscription revenue.
Meanwhile, Ulta Beauty fell 10.5%, the biggest decline among companies in the S&P 500. The cosmetics retailer reported profits that fell short of analysts’ expectations as operating expenses surged.
Crypto Gains
In contrast to stocks, cryptocurrencies saw gains.
Bitcoin climbed 4.6%, reaching roughly $72,777.
The rise boosted shares of companies linked to the cryptocurrency sector. Coinbase Global advanced 2.4%, while Strategy, a firm known for holding large Bitcoin reserves, jumped 4.9%.
Bond Yields Edge Lower
In the bond market, the yield on the 10-year U.S. Treasury slipped slightly to 4.25%, down from 4.26% the previous day.
Before the Iran conflict began, the benchmark yield had been around 3.97%.
Higher Treasury yields increase borrowing costs for consumers and businesses, affecting everything from mortgage rates to corporate financing.
Global Markets Mixed
Stock markets overseas delivered mixed performances.
European markets rose modestly in early trading. Britain’s FTSE 100 gained 0.2%, Germany’s DAX added 0.2%, and France’s CAC 40 increased 0.4%.
In Asia, however, markets fell. Japan’s Nikkei 225 declined 1.2%, with technology companies among the hardest hit. Shares of SoftBank Group dropped 4.5%.
Investors worldwide remain cautious as geopolitical tensions and economic uncertainty continue to shape global financial markets.
You must Register or Login to post a comment.