Stocks Fall as Brent Tops $100 Amid Iran War Escalation – US Market Wrap

Volatility gripped Wall Street as stocks fell and oil climbed to a more than three-year high while the war in Iran intensified. A bond rally faded as surging energy prices fueled inflation concerns.

The S&P 500 erased a nearly 1% gain as the US stepped up strikes on Iran, with the conflict approaching its two-week mark. Brent crude closed above $100. Treasuries lost momentum after rising on weak economic data, with longer maturities underperforming. A gauge of megacaps fell more than 10% from its record, while the dollar reached its highest level since December.

Traders also tracked developments after a federal judge rejected Justice Department subpoenas seeking Fed records tied to headquarters renovations and Powell’s comments to Congress. The US plans to appeal, said Pirro, who leads the US Attorney’s Office for the District of Columbia.

The worst supply disruption in oil market history shows little sign of easing, leaving the global economy exposed to soaring crude prices since the Iran war began.

Recent remarks from Trump and Iran’s new leader signaled no imminent de-escalation. The Pentagon sent a Marine expeditionary unit to the Middle East, according to the Wall Street Journal. Pressure is building for a de-escalation as oil surges.

The US also issued a second authorization allowing countries to buy more Russian oil stranded on tankers due to sanctions, part of efforts to prevent prices from spiking.

Defense Secretary Hegseth said Friday marked the largest attacks against Iran, bringing the total number of targets hit by the US-Israeli alliance since the war began to around 15,000. He added that Iran’s new supreme leader is wounded and likely disfigured.

Trump also signed two executive orders aimed at making homeownership more affordable as the administration seeks to ease cost-of-living pressures while the Iran conflict pushes gas prices higher.