Wall Street Mixed as Oil Retreat Eases Inflation Fears

Stocks show no clear direction amid hopes of de-escalation in the Middle East conflict

Published on Mar. 4, 2026

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New York stocks showed no clear direction on the fifth day of the Middle East conflict, as a cooling in oil prices after a war-driven surge helped to ease inflation fears. Investors also learned of a report that Iranian agents may have secretly contacted the United States to discuss a way out of the conflict, though uncertainty remains.

Why it matters

The conflict in the Middle East has been a major driver of volatility in global markets, particularly due to its impact on oil prices. The easing of oil prices could help alleviate some of the inflationary pressures that have weighed on the economy, providing a potential boost to stocks.

The details

Donald Trump's announcements on naval escorts for oil tankers in the Strait of Hormuz and on insurance against political risks brought some relief. By mid-afternoon, WTI is down 2% at $74.02 and Brent is down 1.23% at $80.96. Investors also learned of a New York Post report saying Iranian agents may have secretly contacted the United States to discuss a way out of the conflict.

  • The conflict in the Middle East is now in its fifth day.
  • The ADP report for February showed the US private sector created more jobs than expected, with 63,000 positions after 11,000 in January.
  • The ISM non-manufacturing PMI surprised on the upside, with activity in the services sector reaching its highest level in more than three and a half years in February.

The players

Donald Trump

Former US president who made announcements on naval escorts for oil tankers and insurance against political risks in the Strait of Hormuz.

Generali AM

Investment management firm that provided a base-case scenario for a limited escalation and temporary disruption to oil and gas flows from the Gulf.

CrowdStrike

Cybersecurity company that forecast fiscal 2027 revenue above Wall Street expectations.

Moderna

Pharmaceutical company that announced an agreement to end its dispute with Arbutus Biopharma and Genevant Sciences.

Babcock & Wilcox

Engineering company that said it has secured final approval to build a $2.4bn power plant intended to supply Applied Digital's artificial intelligence campuses.

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What they’re saying

“Our base-case scenario calls for a fairly limited escalation, with only a temporary disruption (4 to 5 weeks) to oil and gas flows from the Gulf.”

— Generali AM

The takeaway

The easing of oil prices amid the Middle East conflict has helped to alleviate some of the inflationary pressures that have weighed on the economy, providing a potential boost to stocks. However, uncertainty remains as the conflict continues to dominate market attention.