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March 10, 2026 – 13:31

(Bloomberg) — A rally in US stocks faded after reports of an oil tanker explosion and a refinery closure in the Middle East cast doubt on speculation that the war in Iran could be over anytime soon. Treasuries turned lower.

S&P 500 contracts dropped 0.4% after erasing gains of as much as 0.5%. Brent fell 5.3% to around $93 a barrel, off its lows for the day as the Islamic Republic’s state-run broadcaster reported a tanker incident near Abu Dhabi. Meanwhile, the United Arab Emirates halted production at a major refinery following a nearby drone strike.

Treasuries slipped back, with the 10-year yield rising three basis points to 4.13%. Nasdaq 100 futures slipped 0.3% ahead of Oracle Corp.’s earnings. Gold held steady. The dollar fell for a third straight session.

US stocks are giving back gains that followed President Donald Trump’s hint that the conflict could be over “very soon.” The war has triggered seismic moves in oil markets, with flows through the Strait of Hormuz remaining at a near standstill and Gulf producers deepening production cuts.

Meanwhile, Group of Seven energy ministers will meet in Paris on Tuesday as they continue to debate a possible release of oil reserves.

“The war in Iran is not over and can intensify again at any moment,” said Joachim Klement, head of strategy at Panmure Liberum. “Any gains will remain limited until there are clear signs of an end to hostilities in the Gulf and shipping through the Strait of Hormuz improves again.”

Trump’s decision to attack Iran has injected a potentially long-lasting shock into the global economy at a time when investors were already contending with mounting pressures.

The year has seen the emergence of fears that artificial intelligence could be a disruptive technology capable of wiping out wealth for shareholders and creditors. Stubbornly high inflation has also cast doubt on whether the Federal Reserve will be able to resume cutting rates.

What Bloomberg Strategists Say…

“As long as oil is falling, that sends a happy signal elsewhere. How much further it can and will actually fall without an effective re-opening of the Strait of Hormuz is another question, though; presidential rhetoric can only take you so far.”

— Cameron Crise, Macro Strategist, Markets Live. For the full analysis, click here.

Some of the world’s biggest hedge funds, known for their steady returns, suffered hundreds of millions of dollars in losses last week after the war hit portfolios across the industry.

Millennium Management lost about $1.5 billion in the week through March 6, while Balyasny Asset Management declined by 3.5%, according to people familiar with the matter. Point72 Asset Management lost 1.1%.

“We’re advising our clients to favor defensive assets like telecom stocks and beware energy-intensive sectors,” said Laurent Lamagnere, deputy chief executive officer at Alphavalue in Paris. “Oil prices will stay high. Trump saying that the war could end doesn’t mean it actually will.”

Oracle’s earnings after the close on Tuesday may bring traders’ rising skepticism around AI to the fore again. While the enterprise software company is expected to report growth of about 30% in earnings per share and a 20% jump in revenue, the shares could still be punished if investors deem its capital expenditure plans too aggressive.

Corporate Highlights:

Amazon.com Inc. is returning to the bond market, adding to a borrowing spree among companies spearheading the artificial intelligence boom. Pershing Square Inc. filed for an initial public offering, in a deal that would see billionaire Bill Ackman’s hedge fund make its debut on a US exchange alongside a new closed-end fund. Saudi Aramco announced a first-ever share buyback of $3 billion and raised its dividend, while warning that the impact on global oil markets will be “catastrophic” the longer the disruption from the Iran war drags on. Volkswagen AG is targeting more cost reductions to protect profitability that is set to remain under pressure from competition, tariffs and the cost of developing electric vehicles. Exxon Mobil Corp. is seeking to shift its legal home to Texas after being incorporated in New Jersey for more than a century. Taiwan Semiconductor Manufacturing Co.’s sales rose 30% in the first two months of the year, buoyed by the robust pace of AI infrastructure construction. Some of the main moves in markets:

Stocks

S&P 500 futures fell 0.4% as of 8:30 a.m. New York time Nasdaq 100 futures fell 0.3% Futures on the Dow Jones Industrial Average fell 0.4% The Stoxx Europe 600 rose 1.4% The MSCI World Index rose 0.5% Currencies

The Bloomberg Dollar Spot Index fell 0.2% The euro was little changed at $1.1628 The British pound was little changed at $1.3431 The Japanese yen fell 0.2% to 157.97 per dollar Cryptocurrencies

Bitcoin rose 2% to $70,394.31 Ether rose 1.3% to $2,052.9 Bonds

The yield on 10-year Treasuries advanced three basis points to 4.13% Germany’s 10-year yield advanced one basis point to 2.87% Britain’s 10-year yield declined four basis points to 4.61% Commodities

West Texas Intermediate crude fell 4% to $90.99 a barrel Spot gold rose 0.8% to $5,180.79 an ounce This story was produced with the assistance of Bloomberg Automation.

–With assistance from Julien Ponthus and Christian Dass.

©2026 Bloomberg L.P.