Global Stocks Extend Gains Amid Middle East Tensions; Oil Prices Decline

Global stock markets extended their rally into a third consecutive day, with the MSCI All Country World Index rising 0.3%, marking its longest winning streak in over a month. Asian shares led the gains, increasing by 1.6%, driven by memory-chip stocks such as Samsung Electronics Co., which are perceived as less exposed to the Middle East conflict.

Equity-index futures for the U.S. and Europe also rose, indicating potential gains in these regions. This cautious optimism persists even as the conflict in the Middle East shows no signs of easing.

In the U.S., major stock indices posted modest gains on Tuesday, March 17, 2026. The S&P 500 rose by 0.2% to 6,716.09, the Dow Jones Industrial Average increased by 0.1% to 46,993.26, and the Nasdaq Composite gained 0.5% to 22,479.53. The Russell 2000, tracking smaller companies, added 0.7% to close at 2,519.99. This marks a change from the usual market behavior during the conflict, where stock prices often moved inversely to oil prices. Notably, airline stocks advanced after Delta and American Airlines raised their revenue forecasts.

Brent crude oil prices declined by 2.3%, trading around $101 per barrel. The drop followed Iraq's agreement to resume exports via Turkey, bypassing the Strait of Hormuz, and the U.S. intensifying efforts to reopen the key waterway. The ongoing conflict in Iran and the near shutdown of the Strait of Hormuz have disrupted energy markets, raising concerns that surging oil prices could fuel inflation.

Investors are closely monitoring the Federal Reserve's upcoming interest-rate decision, with expectations that the central bank will hold rates steady. Attention is focused on how the Fed may respond if the fallout from the war influences its policy goals.

In geopolitical developments, U.S. President Donald Trump abandoned efforts to recruit partners for the conflict with Iran and criticized allies who openly rejected his appeals. Despite this, the U.S. and Israel continued their operations, with Israel reporting the killing of Iran's security chief, Ali Larijani, in an overnight operation. President Trump threatened to expand strikes on Kharg Island, Iran's main export hub, while Gulf countries faced continued drone attacks from Iran.

Market strategist Louis Navellier advised investors to anticipate continued volatility until the energy situation stabilizes. He noted that gains in U.S. stocks, despite higher oil prices, reflect expectations for solid earnings and economic growth.

In other market movements, the Bloomberg Dollar Spot Index edged 0.1% lower as investors awaited the Fed's decision. U.S. Treasuries rose, with the yield on the benchmark 10-year note dropping two basis points to 4.18%. In commodities, gold fell 0.4% to trade under $5,000 an ounce, and silver declined about 1%.

Corporate highlights include Nvidia Corp. CEO Jensen Huang announcing the company is ramping up manufacturing of H200 AI accelerators for customers in China. BHP Group appointed Brandon Craig as its new chief executive, and Qualcomm Inc. plans to buy back another $20 billion worth of shares and raise its quarterly cash dividend. Boeing Co. signaled that several performance issues will weigh on its first-quarter results, including fewer-than-planned deliveries of its widebody aircraft and wiring defects on the 737 Max.

As markets navigate these developments, investors remain attentive to geopolitical tensions and their potential impact on global economic stability.