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Oil prices drove global markets lower on March 19, 2026, as investors reacted to widening attacks on Middle East energy assets and a stronger inflation threat. Stocks fell across the United States and Europe, bond yields rose, and metals dropped as traders reassessed the outlook for interest rates after fresh signals from the Federal Reserve, the Bank of England, and the European Central Bank.
By late morning in New York, the S&P 500 stood at 6,576.12, down 48.58 points, or 0.73%. The Dow Jones Industrial Average fell 404.65 points, or 0.88%, to 45,820.50, while the Nasdaq dropped 192.68 points, or 0.87%, to 21,959.74. The Russell 2000 slipped 2.34 points, or 0.09%, to 2,476.30, showing smaller losses than the large-cap benchmarks.
Brent crude briefly climbed above $119 a barrel before easing, while West Texas Intermediate touched $100 intraday. The surge followed Iranian attacks on major regional energy sites, including infrastructure in Qatar, Saudi Arabia, and Kuwait. The move deepened concern over supply disruption and added pressure on markets already sensitive to inflation.
Bond markets also reflected a rapid shift in expectations. Short-dated yields climbed as investors reduced bets on near-term rate cuts and considered the risk of tighter policy. Britain’s bond market led the move after the Bank of England warned that it stood ready to respond if the energy shock feeds inflation.
Metals joined the broader selloff. Gold extended its losing streak and fell more than 5%, while silver dropped even more sharply. Higher yields and renewed concern over stubborn inflation reduced demand for non-yielding assets, even as geopolitical risk remained high.
The energy spike has quickly changed the policy narrative. Federal Reserve Chair Jerome Powell said this week that officials will not cut rates until inflation resumes cooling. That message gained more weight after oil prices moved higher and labor market data showed continued resilience in parts of the US economy.
The Bank of England left rates unchanged at 3.75% in a unanimous vote, yet it stressed that inflation risks had risen because of the war-driven increase in fuel and energy costs. The central bank now expects inflation to run hotter than earlier projections, which pushed gilt yields higher and reduced hopes for easing later this year.
The European Central Bank also signaled confidence in its ability to manage the shock, though markets remain uneasy about the region’s energy dependence. Europe faces greater exposure to disruptions in Gulf gas supplies, especially after damage at Qatar’s Ras Laffan complex. That backdrop has made traders more cautious on both equities and bonds.
US officials are now exploring supply measures to contain the damage. Treasury Secretary Scott Bessent said Washington may lift sanctions on roughly 140 million barrels of Iranian oil stranded on tankers and may also release more oil from the Strategic Petroleum Reserve. Those proposals aim to ease tight supply, though traders still see near-term pressure on prices.
The broader market decline did not stop stock-specific moves. Rivian rose after Uber said it would invest up to $1.25 billion to help launch a robotaxi fleet, with initial deployment planned in San Francisco and Miami in 2028. The agreement gives Uber a route deeper into autonomous transport while giving Rivian a major commercial partner.
Micron shares fell after a larger capital spending plan overshadowed upbeat AI-driven results. The chipmaker lifted expected fiscal 2026 capital spending by $5 billion to more than $25 billion, raising concern about margin pressure despite strong demand for high-bandwidth memory.
Elsewhere, Alibaba fell after reporting weak profit despite solid cloud growth, and Eli Lilly drew attention after positive late-stage data for retatrutide in diabetes patients.
FedEx is prepared to report earnings as investors watch for signs of economic resilience.
Alibaba targeted $100 billion in annual cloud and AI revenue within five years.
Eli Lilly reported strong weight-loss and blood-sugar data for retatrutide in a late-stage trial.
Rivian gained from the Uber deal and the prospect of large autonomous vehicle orders.
Chevron benefited from higher oil prices as investors rotated into energy names.
ConocoPhillips also drew support from the rise in crude prices.
Newmont and other miners fell as gold and silver prices dropped sharply.
HSBC weighed possible job cuts tied to a broader AI overhaul.
