The U.S.-Iran war has triggered a sharp selloff across financial markets, with major indices posting their worst weekly declines in years and oil prices soaring to multi-year highs [1][2]. On Friday, the S&P 500 closed down 1.7%, marking its fifth consecutive weekly decline and its worst stretch since 2022. Since the U.S. attacked Iran on February 28, the S&P 500 has fallen about 7% [1]. The Dow Jones Industrial Average dropped 1.7% Friday and has lost nearly 4,000 points since the start of the conflict, now down more than 10% from its most recent high, entering correction territory [1]. The Nasdaq suffered its worst weekly drop since April 2025, falling 3.23% for the week and closing down 2% Friday, now off 13% since its record close in October [1][2].
Tech stocks were hit particularly hard. Meta plunged more than 11% after two court defeats in Santa Fe and Los Angeles, highlighting ongoing challenges in policing Facebook and Instagram [2]. Micron fell more than 15% as investors rotated out of the memory company despite its blowout second-quarter earnings, with revenue nearly tripling to $23.86 billion and projected gross margins of about 80% for the next quarter [2]. Google parent Alphabet dropped nearly 9%, Microsoft sank almost 7%, Nvidia and Amazon slipped about 3% each, and Tesla slid almost 2%. Apple was the exception, notching a slight gain for the week [2].
Oil prices surged sharply, with U.S. crude topping $100 a barrel and global Brent crude reaching approximately $114, the highest levels in more than three years [1][2]. The yield on the 10-year Treasury note rose to 4.4%, its highest since last summer [1]. Energy stocks, such as Exxon, traded near all-time highs [1]. The disruption to oil and gas flows, particularly through the Strait of Hormuz, has exacerbated investor concerns about energy supply and transport costs, with experts suggesting elevated prices may persist indefinitely [1][2].
President Trump attempted to reassure markets by announcing a pause in attacks on Iranian energy sites for 10 days, but stocks barely reacted. Earlier in the week, markets had rallied when Trump announced "productive" talks with Iranian representatives and a five-day pause in strikes on Iranian power facilities [1]. However, analysts like Adam Turnquist of LPL Financial noted that investors are now demanding concrete actions and resolutions rather than commentary, reflecting a shift in market sentiment [1].
Forward-looking statements from Micron CEO Sanjay Mehrotra emphasized the tight supply in memory markets, but even strong corporate results failed to calm Wall Street amid broader geopolitical and energy concerns [2]. Trump indicated in a Truth Social post that he is seeking an end to the war, as rising costs create political challenges for Republicans ahead of the midterm elections [2].
CONCLUSION
The U.S.-Iran conflict has led to significant market volatility, with equities plunging and oil prices reaching multi-year highs. Tech stocks, especially Meta and Micron, suffered steep losses, while energy stocks benefited from surging crude prices. Despite attempts by President Trump to reassure investors, markets remain unsettled, demanding concrete resolutions to the conflict and its impact on global energy supplies.