U.S. Stocks Decline as Iran Conflict Weighs on Market Sentiment
U.S. equities traded mostly lower on Wednesday as investors closely monitored the ongoing conflict involving Iran. Positive developments, including strong earnings from Oracle and a stable U.S. inflation report, were not enough to significantly improve overall market sentiment.
Major Wall Street Indices Move Lower
As of 11:54 ET (15:54 GMT), the S&P 500 declined 0.3% to 6,762.75 points, while the Nasdaq Composite slipped 0.1% to 22,676.29 points. The Dow Jones Industrial Average recorded the largest drop, falling 0.9% to 47,284.53 points.
During the previous trading session, U.S. markets ended with mixed results. The Dow Jones and S&P 500 posted slight declines, while the Nasdaq managed a small gain.
Middle East Conflict Dominates Market Attention
Throughout the session, investors focused heavily on developments in the Middle East. Reports highlighted the possibility of intensified U.S. military action against Iran as part of the joint campaign with Israel that began late last month.
Despite the geopolitical tensions, analysts noted that equities showed limited reaction to the headlines. Market sentiment was also influenced by stronger-than-expected U.S. existing home sales data and encouraging trade figures from China.
Technology stocks, particularly semiconductor and chip component companies, recorded modest gains during the session.
IEA Announces Record Strategic Oil Release
Meanwhile, the International Energy Agency announced that 400 million barrels of oil from emergency reserves will be released into the market. This represents the largest coordinated stock release in the organization’s history and aims to ease the impact of the Iran conflict on global oil prices.
Following the announcement, Brent crude futures rose around 4.3% to $91.58 per barrel, while West Texas Intermediate (WTI) crude futures increased about 4.2% to $87.02 per barrel.
IEA Executive Director Fatih Birol said the unprecedented release demonstrates global cooperation in response to the current energy crisis.
The proposed release exceeds the 182 million barrels distributed after the Russian invasion of Ukraine, which had previously been the largest coordinated intervention.
However, analysts at ING cautioned that the measure may only provide temporary relief. According to the firm, a sustained decline in oil prices will likely require de-escalation of the conflict.
Geopolitical Risks Continue to Influence Oil Markets
Donald Trump warned that U.S. attacks on Iran could intensify following reports that Tehran has deployed naval mines in the Strait of Hormuz.
After media reports indicated that Iran had begun placing mines in the area, Trump stated that Iran would face military action “at a level never seen before” if the mines were not removed.
In a separate interview, Trump suggested that the conflict might end soon, claiming there was “practically nothing left to target” in Iran.
Analysts say oil markets remain extremely volatile, with traders reacting quickly to new developments related to the conflict.
U.S. Inflation Data Meets Expectations
Investors also examined the latest U.S. inflation report, which showed price pressures largely remained stable before the outbreak of the Iran conflict.
Data from the U.S. Bureau of Labor Statistics revealed that the Consumer Price Index (CPI) rose 0.3% month-over-month and 2.4% year-over-year in February, both matching market forecasts.
Meanwhile, core CPI, which excludes food and energy prices, increased 0.2% monthly and 2.5% annually, also in line with expectations.
Market participants note that the report does not yet reflect the recent surge in energy prices triggered by the Middle East conflict.
Oil Prices Could Influence Federal Reserve Policy
The jump in oil and gasoline prices may eventually push inflation higher in the coming months. If energy costs continue rising, the Federal Reserve could face increased pressure to reconsider its monetary policy outlook.
Some analysts believe the central bank may delay interest rate cuts until there is greater clarity on the economic impact of the conflict and energy markets.
Oracle Shares Jump on Strong Earnings
Despite the broader market weakness, Oracle stock surged after the company reported strong quarterly results driven by growth in its cloud computing business.
Oracle posted adjusted earnings of $1.79 per share on revenue of $17.19 billion for fiscal Q3 2026, exceeding analysts’ expectations of $1.70 per share on revenue of $16.92 billion.
Revenue in the company’s cloud segment grew 44% year-over-year to $8.91 billion, highlighting strong demand for AI-driven cloud infrastructure.
Following the results, analysts at Barclays said the report indicates improving long-term fundamentals for Oracle and provides greater clarity on its growth outlook.
