On Friday, March 6th, escalating Middle East conflicts led to a 12% surge in oil prices. Combined with an unexpected slowdown in the US job market, all three major stock indexes on Wall Street closed lower. The Dow Jones Industrial Average fell by 0.95%, the S&P 500 index dropped by 1.33%, and the Nasdaq index declined by 1.59%.
Market analysis pointed out that the disappointing job report has intensified concerns about economic cooling. Moreover, the significant increase in energy costs may further fuel inflation, making the Fed’s path to lowering interest rates more challenging.
On Friday, US crude oil futures prices surged by 12%, surpassing $90 per barrel. Brent crude oil also rose by 8.5% to $92.
Throughout this week, US crude oil prices soared by 35.63%, marking the largest weekly gain since 1983. Brent crude oil prices increased by about 28%, recording its biggest weekly gain since April 2020.
The main reason for the oil price surge is the Iranian blockade causing disruption in the Strait of Hormuz. This waterway carries about 20% of global oil and natural gas shipments, with a deep impact on the Asian market.
Qatar warned that if the Strait of Hormuz remains blocked for an extended period, oil prices could surge to $150 per barrel.
Simultaneously, in February, the US non-farm payroll positions decreased by 92,000, far below market expectations of an increase of 59,000, with the unemployment rate rising to 4.4%, sparking worries about economic trends.
Kristina Hooper, Chief Market Strategist at the New York financial firm Man Group, told Reuters that “this conflict now appears to potentially last longer than many originally hoped, thus causing oil prices to rise. This raises a question: Can the Federal Reserve still cut interest rates?”
Amid multiple negative factors, the Dow Jones Industrial Average fell by 0.95% to close at 47,501.6 points on Friday, the S&P 500 index dropped by 1.33% to close at 6,740 points, and the Nasdaq index plummeted by 1.59% to close at 22,387.68 points. The VIX volatility index, considered the “fear gauge,” also rose to 29.49 points at the close on Friday, reaching its highest level since April 2025.
Due to the increase in oil prices affecting fuel costs and the widespread cancellations of flights (over 23,000 trips), the S&P airline sector slumped by 4%.
The financial sector also dropped by 2%, reflecting market concerns about economic slowdown and worsening credit conditions.
Expecting strong revenue growth due to rising energy costs, the energy sector managed a slight increase of 0.13%.
Tech stocks showed mixed performance as Marvell Technology surged by 18.4% due to better-than-expected financial forecasts, while tech giants broadly followed the market downturn.
Facing energy supply tensions, the Trump administration is taking various measures to stabilize the market.
The US International Development Finance Corporation announced on Friday that it will provide up to $20 billion in reinsurance for the Gulf region to boost confidence among oil and gas transporters.
Treasury Secretary Scott Bessent also stated on Friday that the government is considering lifting sanctions on more Russian oil to increase supply, mentioning, “There are still hundreds of millions of barrels of sanctioned oil on the sea. In essence, by lifting sanctions, the Treasury can create supply, and we are studying this.”
On Thursday, Washington issued a 30-day waiver allowing currently stranded Russian crude oil at sea to continue being sold to India.
Additionally, the White House is considering expediting domestic drilling and development in the Venezuelan market as measures to address the oil price impact.
The surging oil prices have directly impacted the lives of American people, with the average gasoline price in the US rising by 35 cents in the past week to $3.32.
To alleviate inflation pressures, Democratic US Senator Mark Kelly proposed suspending the federal gasoline tax of 18.4 cents per gallon until October 1.
Kelly emphasized, “Suspending the federal gasoline tax will help lower prices and provide much-needed relief to families.”
However, regarding short-term oil price fluctuations, President Trump mentioned in an interview that he is not concerned and reiterated that his current focus is on strengthening military industrial production and demanding unconditional surrender from Iran.