Wall Street Ends Sharply Lower As Iran War Intensifies
By Prime Research | Published at: Mar 13, 2026 10:24 AM IST
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All three major U.S. indexes closed at their lowest points of 2026. The Dow Jones fell more than 700 points to settle below 47,000 for the first time this year, while the S&P 500 and Nasdaq sold off sharply after Iran’s new Supreme Leader, Mojtaba Khamenei, vowed to keep the Strait of Hormuz closed, deepening fears of a protracted conflict.
Iranian strikes on two oil tankers sent crude surging toward $100 per barrel, compounding inflation fears and driving investors out of equities.
WTI Crude surged past $95 — a nearly 10% single-day gain — while Brent breached $100, its highest close since August 2022. The IEA reported that 7.5% of global oil supply has been disrupted, with traffic through the Strait of Hormuz at below 10% of pre-war levels as Iran vows not to let “a litre of oil” pass through.
The Federal Reserve convenes on March 17. The central bank is widely expected to hold rates steady, but its updated economic projections will be scrutinised for revised inflation estimates — the crude spike from the now 13-day-old conflict has yet to filter through the data.
Asian stocks slumped on Friday, headed for a second straight weekly decline as fading hopes of a swift resolution kept oil prices elevated.
The U.S. dollar, the safe-haven of choice, was set for a second consecutive weekly gain and is up 2% since the conflict began in late February. The Dollar Index surged toward 100, pushing EUR/USD down to around 1.1530 — well off its year-to-date high of 1.2080 — while AUD/USD fell sharply below 0.7100, reversing from recent multi-year highs.
Money market futures now price in just one-quarter-point cut by December, down from two before the conflict, as rate-cut expectations have roughly halved — from 66 basis points to around 30 — in two weeks.
The Trump administration has directed U.S. oil companies and shippers to prepare for a possible waiver of the century-old Jones Act, which governs domestic maritime commerce, in an effort to contain rising fuel costs.
After hitting a record low of 92.36, the rupee clawed back to end 15 paise weaker at 92.19, buoyed by RBI intervention.
Equity markets extended their losing streak for a second consecutive session yesterday, with the Nifty 50 falling 227 points or 0.95% to settle at 23,639.
Nifty’s close at the lowest level in the recent downturn underscores the prevailing bearish momentum.
The Nifty trend remains weak, with immediate support at 23,500 and 23,210. On the upside, the 24000 – 24100 zone remains a formidable ceiling for any recovery attempts.
Source: HSL Prime Daily, 13 March 2026
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