2026.3.13 US Market Close | Market tumbles as oil prices surge on Iran risk

On March 13, the New York stock market saw all three major indices fall sharply, shocked by a surge in oil prices driven by geopolitical risks from Iran. While fear gripped the broader market, a clear divergence emerged as the energy sector was the sole gainer, benefiting from the rise in oil prices. - Dow Jones: Down 1.56% - Weighed down by surging oil prices from Iran risk and heightened inflation concerns. - S&P 500: Down 1.52% - Risk-off sentiment spread across the market. - Nasdaq: Down 1.78% - A sell-off centered on technology stocks. Key Issues - Oil Price Spike Shocks the Market: International oil prices surged, with West Texas Intermediate (WTI) jumping 10.5% as geopolitical tensions with Iran escalated. The IEA intensified market fears by labeling it the 'largest supply disruption in history.' - Energy Sector's Lone Rally: While the broader market plunged, the Energy Select Sector SPDR Fund (XLE) rose nearly 1%. The sector's clear divergence was driven by direct benefits from soaring oil prices and a heightened energy security premium. - Stagflation Fears Reignited: The surge in oil prices intensified inflationary pressures, leading to dominant market concerns about stagflation—a scenario of rising prices and economic stagnation. - Southern Copper's (SCCO) Geopolitical Risk: Despite solid earnings, the company's stock fell nearly 5% due to political uncertainty, as its assets are 100% concentrated in Peru and Mexico. Key Stocks - ExxonMobil (XOM): Up 1.29% - Benefiting from expectations related to the oil price surge. - Chevron (CVX): Up 2.7% - Gaining from the heightened energy security premium. - ConocoPhillips (COP): Up 2.76% - Rallied in line with the rise in oil prices. - Occidental Petroleum (OXY): Surged over 5% - A standout performer even among energy stocks. - Southern Copper (SCCO): Down nearly 5% - Weighed down by political risks in Peru and Mexico.