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17 Mar 2026

Wall Street retreats from earlier highs, despite Iran invasion

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On Tuesday, Wall Street experienced a slight retreat from its earlier highs while still managing to maintain overall gains, even as oil prices continued to stay elevated amidst the ongoing military conflict involving the U.S. and Israel's attacks on Iran, and Iran's subsequent responses. 

By 13:50 ET (17:50 GMT), the S&P 500 index had risen by 0.4%, reaching 6,725.55 points, although it had pulled back from an earlier increase of up to 0.8%. Similarly, the tech-heavy NASDAQ Composite saw a rise of 0.5%, climbing to 22,475.68 points, after initially peaking at a 0.9% increase. 

The Dow Jones Industrial Average, which is often seen as a barometer for the broader economy, added 0.3% to reach 47,062.52 points, also retracting from a gain that had reached as high as 1%.

The previous day had seen a strong performance in the stock market, largely bolstered by a surge in technology stocks, particularly driven by Nvidia (NASDAQ: NVDA), alongside a decline in oil prices. 

The positive momentum carried over into Tuesday's opening but began to wane as oil prices began to creep higher again. Jake Dollarhide, CEO of Longbow Asset Management, commented on the situation, stating that the apparent paradox of rising oil and stock prices could be attributed to the geopolitical tensions in the region. 

He noted that the news of Israel's targeted killing of Iranian security chief Ali Larijani could contribute to a short-term bullish sentiment in the market. However, he cautioned that the market remains precarious, suggesting that any adverse news regarding oil trade or the potential escalation of the conflict could lead to a rapid market reversal and an increase in volatility, as reflected by the VIX index.

Reports indicate that Larijani was allegedly killed during airstrikes conducted on Monday, as reported by the Wall Street Journal, citing sources close to the situation. 

Additionally, there are unconfirmed reports that Gholamreza Soleimani, the commander of Iran's Basij paramilitary force—known for its role in quelling anti-government protests earlier this year—was also killed in the same strikes. 

However, Iranian officials and state media have yet to confirm these claims, leaving a cloud of uncertainty over the situation.

As the conflict in the Middle East intensifies, the strategic Strait of Hormuz, a crucial maritime corridor located south of Iran through which approximately one-fifth of the world's oil supply transits, remains effectively closed. 

Earlier this week, Iranian authorities stated that while the strait is open to all ships, they have imposed restrictions that could hinder the passage of vessels associated with certain nations, particularly those perceived as adversaries. 

This development has raised concerns among global markets, as any disruption in this vital waterway could lead to significant fluctuations in oil supply and prices, further impacting the global economy.

In conclusion, the current state of the markets reflects a complex interplay of geopolitical tensions and economic indicators. Investors are closely monitoring developments in the Middle East, as the potential for escalated conflict could have far-reaching implications not only for oil prices but also for global financial stability. 

The fragility of the market underscores the need for vigilance and adaptability in navigating these turbulent times.

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