Wall Street Falls as Oil Hits $100 Amid Iran Conflict Surge

Wall Street ended Friday lower as the ongoing conflict in Iran continues to push oil prices above $100 a barrel, raising concerns about inflation and global economic pressure.

The S&P 500 fell 0.6% to 6,632.19, erasing early gains of 0.9%, and is down 3.1% for the year. The Dow Jones Industrial Average lost 0.3%, closing at 46,558.47, while the Nasdaq dropped 0.9% to 22,105.36. All three indexes posted their third consecutive weekly loss.

Crude oil prices briefly eased early Friday but surged again, with Brent crude closing 2.7% higher at $103.14 per barrel, up 40% this month. U.S. crude rose 3.1% to $98.71, a 46% increase this month.

“Markets are moving mainly with crude oil news right now,” said Michael Antonelli, market strategist at Baird. “Investors are reacting day by day to developments in the Middle East.”

The Strait of Hormuz, a key oil shipping route, has been effectively closed since the start of the war, halting around a fifth of global oil traffic. Over 12 million barrels of oil equivalent per day have been taken offline, according to Rystad Energy.

The disruption threatens higher inflation, which could slow global economic growth. The International Energy Agency announced a release of 400 million barrels from emergency reserves, but some economists say this may not calm markets.

Long-term U.S. Treasury yields rose, with the 10-year yield at 4.28%, up from 3.97% before the war. Higher yields may increase consumer loan costs and affect investments.

Inflation also showed signs of rising before the conflict. January consumer prices rose 2.8% year-on-year, with core inflation at 3.1%, the highest in nearly two years. Consumer spending increased 0.4% in January, supported by similar income growth.

Economic growth slowed in the final quarter of 2025, revised down to 0.7% annual rate due to last fall’s government shutdown.

Among S&P 500 stocks, Ulta Beauty dropped 14.2% after reporting higher expenses and missing profit targets.

Global markets also felt the impact, with European indexes mostly lower following declines in Asia.