US sharemarkets ended lower on Friday as oil prices continued to climb and investors monitored developments in the conflict with Iran. The S&P 500 fell 0.61% to close at 6,632.19, while the Nasdaq Composite declined 0.93% to 22,105.36. The Dow Jones Industrial Average dropped 119 points, or 0.26%, to finish at 46,558.47.
The declines pushed the S&P 500 to a new low for 2026 and extended its losing streak to three weeks. For the week, the Dow fell about 2%, the S&P 500 lost 1.6%, and the Nasdaq dropped 1.3%.
Oil climbs above US$100 as supply disruption fears persist
Energy markets remained the key driver of volatility. West Texas Intermediate crude rose 3.11% to settle at US$98.71 a barrel, while Brent crude gained 2.67% to close at US$103.14. Brent had already moved above US$100 a barrel for the first time since August 2022 in the previous session.
Oil prices have surged amid concerns about supply disruptions following the closure of the Strait of Hormuz, a critical global shipping route.
Investors are increasingly concerned that sustained high energy prices could slow global growth while pushing inflation higher, raising the risk of a stagflationary environment.
Interest rate expectations shift
The surge in oil prices has also influenced expectations for monetary policy. Some traders have begun scaling back expectations for US interest rate cuts this year as higher energy costs threaten to lift inflation.
Australian market outlook
Australian shares are expected to open lower on Monday as global markets react to the continued rise in oil prices. ASX 200 futures indicate a fall of 61 points, or 0.7%, to 8,547.
The local market has already declined more than 6% since the conflict escalated two weeks ago, erasing over $190 billion in market value.
Higher oil prices are also expected to push inflation higher in Australia. Treasury has warned headline inflation could rise into the mid-to-high four per cent range this year, increasing the likelihood the Reserve Bank will lift the cash rate again at its upcoming meeting.
