Oil jumps to $100 per barrel and stocks sink worldwide with no clear end
in sight for the Iran war
[March 13, 2026] By
STAN CHOE
NEW YORK (AP) — With no clear end in sight, the war with Iran sent oil
prices back to $100 per barrel on Thursday, and stocks sank worldwide.
The S&P 500 fell 1.5% and resumed its sharp swings following a couple
days of relative calm. The Dow Jones Industrial Average dropped 739
points, or 1.6%, and the Nasdaq composite lost 1.8%.
The center of action was again the oil market, where the price of a
barrel of Brent crude, the international standard, climbed 9.2% to
settle at $100.46. Worries are worsening that the war could block the
production of oil in the Persian Gulf for a long time and cause a
debilitating surge of inflation for the global economy.
Iran’s new supreme leader released his first statement Thursday since
succeeding his late father, saying his country would keep up attacks on
Gulf Arab neighbors and use the effective closure of the Strait of
Hormuz as leverage against the United States and Israel. A fifth of the
world’s oil typically sails through the strait, and oil producers in the
region are cutting production because their crude has nowhere to go.
Countries around the world are trying to make up for that, and the
International Energy Agency said Wednesday that its members would
release a record amount of oil, 400 million barrels, from stockpiles
built for such emergencies.
But such moves are short-term fixes, and they do not clear the long-term
risks. Analysts have said that if the Strait of Hormuz remains closed,
oil prices could jump to $150.
To be sure, the U.S. stock market has a history of bouncing back
relatively quickly from military conflicts in the Middle East and
elsewhere, as long as oil prices don’t stay too high for too long. Even
with all the up- and- down swings of the last couple weeks, many rocking
markets hour to hour, the S&P 500 is just 4.4% below its all-time high
set in January.
What’s made this jump for oil prices frightening is not only the degree
— prices jumped near $120 this week to their highest level since 2022 —
but that they’re occurring during an uncertain time for the economy.
Last month’s hiring by U.S. employers was surprisingly weak, which
raised worries about a possible worst-case scenario for the economy
called “stagflation.” That’s where economic growth stagnates while
inflation remains high, and it’s a miserable mix that the Federal
Reserve has no good tools to fix.
A more encouraging signal arrived Thursday. A report said that the
number of U.S. workers applying for unemployment benefits inched lower
last week. That’s a sign that layoffs are potentially remaining low
around the country.
Dollar General, meanwhile, reported better profit and revenue for the
latest quarter than analysts expected. But the retailer with relatively
low prices, whose customers often have the least cushion to absorb
higher gasoline prices, gave forecasts for revenue this upcoming year
that indicated a potential slowdown in growth. Its stock fell 6.1%.
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Gregg Maloney works on the floor at the New York Stock Exchange in
New York, Tuesday, March 10, 2026. (AP Photo/Seth Wenig)
 Some of Wall Street’s worst losses
again hit companies with big fuel bills. Cruise-ship operator
Carnival fell 7.9%, and United Airlines sank 4.6%.
Worries about the private-credit industry also continued to hurt the
market. Investors have been pulling their money out of some funds
and companies that have lent to businesses whose profits are under
threat. Many of the worries are focused on business that may not pay
back their loans because of competition from AI-powered rivals.
Morgan Stanley fell 4.1% after its North Haven Private Income Fund
said it allowed investors to redeem 5% of its total shares instead
of the nearly 11% they had requested. That 5% cap is the advertised
limit.
All told, the S&P 500 fell 103.18 points to 6,672.62. The Dow Jones
Industrial Average dropped 739.42 to 46,677.85, and the Nasdaq
composite sank 404.16 to 22,311.98.
In stock markets abroad, indexes fell across Europe and Asia.
Japan’s Nikkei 225 dropped 1%, and France’s CAC 40 sank 0.7% for two
of the world’s bigger moves.
In the bond market, Treasury yields continued to climb because of
upward pressure from rising oil prices. The yield on the 10-year
Treasury rose to 4.26% from 4.21% late Wednesday and from just 3.97%
before the war started.
Higher yields make all kinds of borrowing more expensive, such as
mortgages for potential U.S. homebuyers and bond offerings for
companies looking to expand. They also push down on prices for all
kinds of investments, from stocks to crypto.
Because of the spike for oil prices, traders have pushed back
forecasts for when the Fed could resume its cuts to interest rates.
President Donald Trump has been angrily calling for such cuts, which
would give the economy and job market a boost but also potentially
worsen inflation.
A barrel of benchmark U.S. crude rose 9.7% to settle at $95.73.
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AP Business Writers Matt Ott and Elaine Kurtenbach contributed.
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