**Major Stock Indexes Close Lower Amid Geopolitical Tensions and Soaring Oil**

March 7, 2026 - 05:22

U.S. stock markets fell on Friday, capping a volatile week of losses as escalating tensions in the Middle East sent oil prices surging and rattled investor sentiment. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all closed in negative territory.

The primary catalyst for the market's retreat was a sharp spike in global oil prices, with Brent crude breaching the $90 per barrel mark. This surge, driven by heightened geopolitical risks, stoked fears of persistent inflation and potentially higher interest rates for longer. These concerns overshadowed corporate earnings season, which is set to begin in earnest next week.

Throughout the week, equities struggled for direction as investors weighed strong economic data against the uncertain outlook for monetary policy. The jump in energy prices compounded existing anxieties, leading to broad-based selling pressure. The week's performance highlighted the market's acute sensitivity to international conflicts and their potential to disrupt energy supplies and amplify inflationary pressures, forcing a cautious retreat from risk assets.