Major Stock Indexes Break Five-Week Slump Amid Escalating Iran War Rhetoric and Crude Oil Surge

Major indexes rally to end the week higher despite surging oil prices and President Trump's warnings of an intensified conflict with Iran.

By: AXL Media

Published: Apr 4, 2026, 8:05 AM EDT

Source: Information for this report was sourced from Investopedia

Equity Markets Stabilize Following Period of Sustained Decline

The tech-heavy Nasdaq and the benchmark S&P 500 managed to secure a positive end to the week, closing up 0.2% and 0.1% respectively on Thursday. This late-session rally allowed the major indexes to break a grueling five-week period of consecutive losses, with the Nasdaq finishing the four-day trading week up 4.4%. While the Dow Jones Industrial Average slipped 0.1% on Thursday, it still ended the week 3.0% higher, reflecting a broader market attempt to rebound from the early volatility seen at the start of the second quarter.

Geopolitical Escalation Impacts Global Energy Benchmarks

Energy markets reacted sharply to televised comments from President Donald Trump, who vowed to target Iran with extreme force in response to ongoing Middle East hostilities. West Texas Intermediate (WTI) crude futures surged more than 11% to reach $111.50 a barrel, at one point touching $114, the highest level since the conflict began on February 28. Brent crude followed a similar trajectory, settling up nearly 8% at over $109, as investors weighed the President's rhetoric against reports of potential protocols to reopen the Strait of Hormuz.

Travel and Tourism Sectors Face Fuel Cost Pressures

The spike in crude oil prices had an immediate negative impact on industries sensitive to energy costs, particularly airlines and cruise operators. Shares of Delta Air Lines, United Airlines Holdings, and American Airlines Group declined between 1% and 3.5% as investors anticipated higher operational expenses. Similarly, major cruise lines including Carnival Corp. and Royal Caribbean Cruises pulled back, reflecting the market's concern that sustained high fuel prices will weigh heavily on profit margins during the current geopolitical crisis.