S&P 500 Slips on Heightened Inflation, Energy Risks

FomoAnxiety · 2026-03-05T15:54:00+00:00

The S&P 500 is struggling amid ongoing U.S.-Iran conflict concerns, with oil prices surging 15% as risks to the Strait of Hormuz impact global energy markets. Increased energy costs could adversely affect both corporations and consumer spending.

FomoAnxiety

2026-03-05 15:54:00

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The S&P 500 (SPX) is off to a slow start on Thursday as investors assess the risks of the U.S.-Iran war on the sixth day of the conflict.

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The Strait of Hormuz, which borders Iran, handles about 20% of global oil flows. Since the U.S. and Israel launched a coordinated attack on Iran over the weekend, volume at the strait has plummeted by roughly 95%. “Any disruption to transport through the Strait can have substantial impacts to global energy markets and prices,” said Devin McDermott, Morgan Stanley’s Head of North American Energy Research.

Oil Prices Surge as Iran Conflict Escalates

Iran’s Islamic Revolutionary Guards Corps has vowed to continue retaliating and has attacked U.S. bases in several Middle Eastern countries. The country hasn’t closed down the strait, although tankers have still avoided the area due to the risk of being targeted.

Brent crude oil (BZ) has climbed by 15% during the past week, with Goldman Sachs warning that an extended conflict could send prices to $100 per barrel.

Higher energy prices hurt both corporations and consumers, as they raise the cost of transportation and travel. They can also cause consumers to reduce their discretionary spending.

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