New York, March 3, 2026, 09:57 (EST)
- Futures on U.S. stocks slipped, with shares across Europe and Asia also moving lower, as the U.S.-Israel conflict with Iran rolled into its fourth day.
- Oil surged, while European gas prices spiked—renewing concerns over another potential inflation jolt.
- After mostly shrugging off the conflict on Monday, investors started to reassess the economic risks.
Stocks dropped worldwide, with U.S. futures also down Tuesday, as investors braced for a more prolonged hit to energy supplies stemming from the expanding conflict with Iran.
This shift hits hard, with energy prices pushing directly into inflation—potentially knocking interest rate expectations off course. Investors have been banking on rate cuts and steady corporate earnings, but an oil shock? That’s the curveball that could unravel both assumptions.
Explosions rocked Tehran and Beirut as Iranian drones targeted the U.S. embassy in Saudi Arabia following an earlier strike on the U.S. mission in Kuwait, Reuters reported. Washington responded by shuttering both embassies and pulling non-emergency staff and families from parts of the Middle East. The war has snarled traffic through the Strait of Hormuz—critical for roughly a fifth of global oil and LNG shipments—sending crude surging 15% in just two days and European wholesale gas prices jumping 40%, according to the report.
Dow futures slid roughly 850 points, off 1.8%, as South Korea’s Kospi ended the session with a steep 7.2% loss, according to CNN. Investors zeroed in on the possibility that pricier oil could weigh on growth. “Conflict … doesn’t go on to materially impact … US corporate profits,” said David Stubbs, chief investment strategist at AlphaCore Wealth Advisory, in the report. Meanwhile, Jason Pride, Glenmede’s chief of investment strategy and research, pointed out geopolitical shocks often spark “near-term volatility” but rarely derail the broader market’s trajectory for long. https://keyt.com/news/money-and-business/c…
After a quieter start to the week—stocks slipped early Monday but found footing as buyers returned—the mood shifted sharply on Tuesday. Traders pushed aside the front-page stories, zeroing in instead on rising fuel prices.
Oil and gas took the hit. Reuters reported that Qatar, one of the top LNG exporters, stopped production. Shipping crude from the Middle East to Asia? The price for a tanker shot up—nearly four times higher, now topping $400,000 a day.
Political visibility remains low. According to Reuters, a source with knowledge of Israel’s war plan said the operation was mapped out for two weeks. President Donald Trump and Israeli Prime Minister Benjamin Netanyahu, though, have stayed silent on when it might wrap up.
Duration’s the issue on everyone’s mind. According to Stubbs in the CNN report, equity markets might shrug off a month of disruption, but if conflict drags on or spreads, it won’t be so easy to ignore for much longer.
But there’s another fixation in play: technology. As CNN pointed out, the S&P 500 is packed with mega-cap tech stocks. That lineup keeps investors’ focus glued to artificial intelligence and the pace of earnings, despite geopolitical tensions grabbing headlines.
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