Stock indexes, bond prices fall as Iran crisis pushes oil above $105

By Caroline Valetkevitch and Marc Jones

March 25, 202610:13 PM EDTUpdated 6 mins ago

Item 1 of 2 Rubble lies at a site damaged in an Israeli strike, amid escalating hostilities between Israel and Hezbollah, as the U.S.-Israeli conflict with Iran continues, in Nabatieh, Lebanon, March 25, 2026. REUTERS/Yara Nardi

[1/2]Rubble lies at a site damaged in an Israeli strike, amid escalating hostilities between Israel and Hezbollah, as the U.S.-Israeli conflict with Iran continues, in Nabatieh, Lebanon, March 25, 2026. REUTERS/Yara Nardi

• Summary
• Companies
• US stocks down, with Nasdaq leading losses
• Investors wary as Iran reviews US proposal
• Investors worry about energy price shocks

NEW YORK/LONDON, March 26 (Reuters) – Major stock indexes eased on Thursday as Brent oil futures rose above $105 a barrel, with​Iran’s denial of any talks with the U.S. dimming hopes of a quick resolution to the nearly one-month-long Middle ‌East war.

Global debt markets also sold off, pushing yields higher, while safe-haven buying boosted the U.S. dollar.

Prospects of a prolonged war in the Middle East fanned worries about energy supply disruptions. Oil and European natural gas rose, with Brent futures up $4.77 at $106.99 a barrel and U.S. crude futures up at $93.64.

U.S. President Donald Trump warned Iran ​on Thursday to “get serious” about a deal to end nearly four weeks of fighting.

Iran’s Foreign Minister Abbas Araqchi had earlier​said Tehran was reviewing the U.S. proposal but that there were no talks on winding down the ⁠war. Iran on Thursday launched multiple waves of missiles at Israel.

The war, triggered by U.S.–Israeli strikes on Iran in late February, has​rattled global markets and effectively shut the Strait of Hormuz, a conduit for a fifth of global oil and liquefied natural gas flows.

Stocks​fell “as oil prices resumed their upward climb”, said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

“Unfortunately, we’re in a market that’s being driven by oil prices. The rhetoric back and forth is continuing, and until talks begin, the market is going to be subject to the price of ​oil,” he said.

The Dow Jones Industrial Average (.DJI), opens new tab fell 75.50 points, or 0.19%, to 46,342.69, the S&P 500 (.SPX), opens new tab fell 43.59 points, or 0.68%,​to 6,547.14 and the Nasdaq Composite (.IXIC), opens new tab fell 216.95 points, or 1.02%, to 21,705.16.

MSCI’s gauge of stocks across the globe (.MIWD00000PUS), opens new tab dropped 6.75 points, or 0.68%, to ‌988.71. The ⁠pan-European STOXX 600 (.STOXX), opens new tab index fell 0.64%.

Japan’s Nikkei (.N225), opens new tab ended down 0.3%, while worries over rising energy costs hammered South Korea’s KOSPI (.KS11), opens new tab, which slumped 3.2%. Hong Kong’s Hang Seng (.HSI), opens new tab fell 1.9% and China’s blue chips (.CSI300), opens new tab dropped 1.3%.

The Philippines held an unscheduled central bank meeting due to the turmoil, while Germany’s central bank head said an ECB rate hike next month was “an option”.

Fears of a 2022-style inflation shock have seen traders fully​price out any chance of a​ Federal Reserve rate cut this ⁠year, further supporting the dollar.

Germany’s two-year bond yield , sensitive to European Central Bank rate expectations, rose after falling on Wednesday. Bond yields move inversely to prices.

Worries about persistent inflation also drove U.S. Treasury yields higher.​The benchmark U.S. 10-year Treasury yield was last up 4.2 basis points at 4.37%. The two-year​note’s yield was ⁠last up 5.4 bps at 3.934%.

Earlier, the yield on Japan’s two-year government bond hit its highest level in 30 years at 1.33%, as traders cemented bets on another Bank of Japan rate hike as early as next month.

In currencies, the U.S. dollar rose against most major currencies, reviving its safe-haven appeal.

The dollar ⁠index , which​measures the greenback against a basket of currencies including the yen and the​euro, rose 0.1% to 99.75, with the euro down 0.13% at $1.1544. Against the Japanese yen , the dollar strengthened 0.04% to 159.53.

Gold retreated as the dollar rose. Spot gold was​down 0.89% at $4,465.06 an ounce.

Reporting by Caroline Valetkevitch in New York and Marc Jones in London; Editing by Mark Potter and Arun Koyyur