Stocks drop as oil prices spike to 2-year high

The losses came as financial markets around the world follow the cue of oil prices, which have surged due to the war with Iran.

Mar. 6, 2026 at 2:24am

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Stocks on Wall Street fell sharply on Thursday as the price of oil spiked to its highest level since the summer of 2024 due to the ongoing war with Iran. The S&P 500 dropped 0.6%, the Dow Jones Industrial Average fell 1.6%, and the Nasdaq Composite slipped 0.3%. The losses came as financial markets globally continue to be influenced by oil prices, with concerns that a prolonged surge could weigh on the global economy.

Why it matters

Sharp increases in oil prices are raising worries that a long-term surge could grind down the global economy, exhaust households' ability to spend, and push interest rates higher. The war with Iran has disrupted oil production, causing prices at U.S. gasoline pumps to leap. If oil prices spike further and stay elevated, some analysts say it could be too much for the global economy to withstand.

The details

The price for a barrel of benchmark U.S. crude shot up 8.5% on Thursday to settle at $81.01 per barrel. Brent crude, the international standard, climbed 4.9% to $85.41 per barrel and is near its highest price since 2024. Stocks of airlines were among the worst performers, as higher oil prices increase their already big fuel bills. Smaller company stocks also took heavy hits, which is typical when worries are growing about the strength of the economy and rising interest rates.

  • On Thursday, March 5, 2026, oil prices spiked to their highest level since the summer of 2024.

The players

Broadcom

A chip company whose stock rose 4.8% after reporting stronger profit and revenue for the latest quarter than analysts expected.

Scott Wren

A senior global market strategist at Wells Fargo Investment Institute who believes the more likely outcome is an increase in market risk aversion that likely lasts only a short time until investors can see a winding down of hostilities.

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What they’re saying

“While further escalation remains a risk, we think the more likely outcome is an increase in market risk aversion that likely lasts only a short time until investors can see a winding down of hostilities.”

— Scott Wren, Senior Global Market Strategist

The takeaway

This market volatility highlights the significant impact that geopolitical tensions and disruptions in the global oil supply can have on financial markets. Investors will be closely watching for any signs of de-escalation in the conflict with Iran, as well as the potential for further spikes in oil prices that could threaten the broader economic recovery.