Wall Street Pressured by Private Credit Fears and U.S.-Iran Tensions

Blue Owl Capital's move to tighten investor liquidity raises alarms about stability in the private credit market

Published on Feb. 27, 2026

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U.S. markets had a shaky Thursday, pressured by Washington's escalating tensions with Iran and renewed worries over the private credit market. Blue Owl Capital's decision to sell $1.4 billion in loan assets and tighten investor liquidity in three of its private debt funds raised concerns about stability in the private credit sector. Meanwhile, the White House and President Trump signaled potential military action against Iran, pushing oil prices higher.

Why it matters

Tensions between the U.S. and Iran, as well as instability in the private credit market, can have significant impacts on the broader economy and financial markets. Potential military conflict could disrupt oil supply, while issues in the private credit sector could spread to other asset classes and raise broader concerns about financial stability.

The details

White House press secretary Karoline Leavitt said there were "many reasons and arguments that one could make for a strike against Iran," and President Trump said he will decide within 10 days whether to take action. This pushed oil prices up nearly 2%. Meanwhile, Blue Owl Capital's decision to sell $1.4 billion in loan assets and tighten investor liquidity in three of its private debt funds led to a nearly 6% drop in its stock price, while shares of other asset managers like Blackstone and Apollo Global Management also retreated.

  • On Wednesday, White House press secretary Karoline Leavitt made comments about potential military action against Iran.
  • On Thursday, President Trump said he will decide within 10 days whether to take action against Iran.

The players

Karoline Leavitt

White House press secretary who said there were "many reasons and arguments that one could make for a strike against Iran".

Donald Trump

President of the United States who said he will decide within 10 days whether to take action against Iran.

Blue Owl Capital

A private market and alternative assets manager that sold $1.4 billion of loan assets held in three of its private debt funds, raising concerns about stability in the private credit market.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

The takeaway

The combination of geopolitical tensions with Iran and instability in the private credit market are putting significant pressure on Wall Street, raising concerns about the broader economic and financial implications. Investors will be closely watching how these developments unfold in the coming days and weeks.