Stocks Plummet as Iran War Drags On

Dow closes down nearly 800 points amid global oil crisis and economic instability

Mar. 28, 2026 at 1:06am

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Stocks closed significantly lower on Friday as the U.S.-Israeli war with Iran showed little sign of an imminent resolution, exacerbating one of the worst global oil shocks in decades. The Dow Jones Industrial Average plunged 790 points, or 1.7%, while the S&P 500 fell 1.6% and the tech-heavy Nasdaq dropped 2.1%.

Why it matters

The ongoing conflict with Iran has disrupted global oil supply, sending prices skyrocketing and sparking fears of broader economic instability. This crisis has surpassed the combined effect of worldwide energy shocks in the 1970s, posing a major threat to the global economy.

The details

Late Thursday, President Donald Trump postponed U.S. attacks on power plants in Iran in an apparent effort to avoid escalation of the Middle East conflict. However, Iran continues to blockade the Strait of Hormuz, a critical waterway for oil delivery. Global oil prices stood at about $113 a barrel on Friday, marking a staggering 61% rise since the war began a month ago. U.S. Treasury yields also climbed, suggesting concern about economic instability and inflation stemming from the Iran war.

  • The U.S.-Israeli war with Iran has been ongoing for one month as of March 27, 2026.
  • On Thursday, March 27, 2026, President Trump postponed U.S. attacks on power plants in Iran.

The players

Donald Trump

The President of the United States who postponed U.S. attacks on power plants in Iran.

Fatih Birol

The executive director of the International Energy Agency (IEA) who warned that the current oil crisis had surpassed the combined effect of worldwide energy shocks in the 1970s.

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What they’re saying

“The current oil crisis had surpassed the combined effect of worldwide energy shocks in the 1970s, posing a major, major threat to the global economy.”

— Fatih Birol, Executive Director, International Energy Agency

What’s next

The global community will be closely monitoring the situation in the Strait of Hormuz and any further developments in the U.S.-Israeli conflict with Iran, as the economic fallout continues to reverberate worldwide.

The takeaway

This crisis highlights the fragility of the global economy and the outsized impact that geopolitical conflicts can have on energy markets and financial stability. Policymakers will need to carefully navigate this complex situation to mitigate the broader economic damage.