Global stock markets extended their decline on Friday as investors watched for progress in diplomatic efforts to ease the ongoing Middle East conflict. With the Strait of Hormuz remaining effectively closed, concerns about disrupted oil supplies pushed energy prices higher. Brent crude futures rose over 4% to settle at $112.57 a barrel, while U.S. West Texas Intermediate gained more than 5%, closing just below $100.
On Wall Street, major indexes — the Dow Jones, S&P 500, and Nasdaq — ended the week lower, marking their fifth consecutive weekly drop. Analysts say that while President Donald Trump’s call for patience and continued negotiations offered some reassurance, markets are waiting for concrete signs of de-escalation before confidence returns.
The volatility also rippled through bond markets, where U.S. Treasury yields reached their highest since mid-2024. Rising energy costs are fueling expectations of persistent inflation, increasing pressure on central banks to remain cautious about future rate moves.
Investors across Europe and Asia mirrored Wall Street’s mood, with key regional indices finishing lower. Analysts suggest that a clear diplomatic breakthrough could swiftly restore optimism and stabilize investor sentiment worldwide.
Frequently Asked Questions
What caused the recent global stock market slide?
Stocks fell as investors reacted to the ongoing Strait of Hormuz closure by Iran, now over four weeks old amid U.S.-Iran conflict, overshadowing President Trump's diplomatic statements. Major U.S. indexes like the Dow, S&P 500, and Nasdaq dropped 1.7-2.2% on Friday, confirming corrections for Dow and Nasdaq.
Why did oil prices surge?
The Strait of Hormuz blockade disrupts about 20% of global oil supply, driving Brent crude up 4.22% to $112.57 and WTI up 5.4% to $99.64. Iran's IRGC continues to block shipping, with recent incidents including vessel strikes and prohibitions on U.S./allied ships.
How has the U.S.-Iran conflict progressed?
The crisis escalated after U.S.-Israel strikes on Iran in late February 2026; Iran closed the strait and launched retaliatory attacks. Trump extended a deadline for reopening but Iran denies negotiations, maintaining control with vetting for some transits.
What are the impacts on bonds and yields?
U.S. 10-year Treasury yields rose to 4.428%, the highest since July 2024, as higher oil costs stoke inflation fears and rate-hike bets. Markets now price a 60% chance of Fed rate hikes this year.
Is there hope for market recovery?
Analysts call for tangible diplomatic progress, like reopening the strait, to restore confidence; some ships have transited selectively, but disruptions persist. Consumer sentiment hit a three-month low due to inflation worries.
