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March 13, 2026 – 10:45

(Bloomberg) — Stocks extended their declines as oil prices held above $100 a barrel, deepening fears of a global inflation spike.

With the Iran war at the two-week mark, a global equity index was set for a second week of losses, having fallen from record highs hit before the conflict. Europe’s Stoxx 600 index fell 0.6%, undermined also by signs of distress in private credit markets. US futures steadied after the S&P 500 Index slid to its lowest since November. An index of the Magnificent Seven tech stocks fell in premarket trading, approaching correction territory. Brent crude was above $101, after surging 9.2% on Thursday.

In currencies, investors continued to buy the dollar, which added 0.4% after closing at its highest in almost two months. The euro and yen, both vulnerable to high oil prices, fell, with the Japanese currency hitting its weakest since 2024, nearing levels where authorities previously intervened to support it. The pound dropped 0.6% after data showed UK economic activity was stalling even before the Middle East conflict started.

The latest rhetoric from President Donald Trump and Iranian leader Mojtaba Khamenei suggest there would be no easing of a war that’s upending energy flows and global markets. Iran said it would seek to ensure the Strait of Hormuz remains effectively closed, putting investors on high alert for further escalation.

“It’s Friday, so investors would be reassessing their hedges going into the weekend,” said Mohit Kumar, chief strategist for Europe at Jefferies. “It is likely that we see further escalation in the near term.”

Oil prices are now more than 60% higher than at the start of 2026, shrugging off coordinated moves by wealthy nations to release crude reserves. The US issued a second temporary waiver allowing purchases of Russian oil, and also plans to waive a century-old maritime law requiring American ships be used to transport goods between US ports.

Goldman Sachs Group Inc. warned crude prices could exceed the 2008 peak close to $150 a barrel, should flows via the Strait of Hormuz remain depressed through March. The war is causing unprecedented turmoil in oil markets, hitting 7.5% of global supply and an even bigger swath of exports, according to the International Energy Agency.

“It feels as though the market has taken its timeline for the duration of the closure of the Strait of Hormuz and the conflict more broadly, and pushed it further out, suggesting this could have a more damaging effect on inflation and potentially consumption patterns,” Chris Weston, head of research at Pepperstone Group, wrote in a note.

As the energy moves stoke fears of a looming price surge, investors will be on the lookout for US inflation figures due later Friday. While the data is for a period preceding the war, the Federal Reserve’s favored price gauge is expected to show inflation remaining stubbornly high. Meanwhile a preliminary March survey of consumers will show Americans view the impact of the Iran conflict, given the recent rise in gasoline prices.

“Inflation is actually ramping up as a big risk,” Tracy Chen, a portfolio manager for global fixed income at Brandywine Global Investment Management, said on Bloomberg Television. “Duration of the conflict is key. We have been raising US dollar weighting a little bit just to increase our hedge.”

Treasuries were little changed. However, a measure of their volatility has jumped to a nine-month high as traders dialed back expectations for the Federal Reserve interest-rate cuts. They now price less than 20 basis points in rate cuts this year, compared to 61 basis points before the war.

Some of the main moves in markets:

Stocks

The Stoxx Europe 600 fell 0.6% as of 9:41 a.m. London time S&P 500 futures were little changed Nasdaq 100 futures fell 0.1% Futures on the Dow Jones Industrial Average were unchanged The MSCI Asia Pacific Index fell 1.3% The MSCI Emerging Markets Index fell 1.4% Currencies

The Bloomberg Dollar Spot Index rose 0.3% The euro fell 0.5% to $1.1456 The Japanese yen was little changed at 159.38 per dollar The offshore yuan fell 0.2% to 6.8982 per dollar The British pound fell 0.6% to $1.3269 Cryptocurrencies

Bitcoin rose 2.4% to $71,874.15 Ether rose 2.1% to $2,106.1 Bonds

The yield on 10-year Treasuries advanced one basis point to 4.27% Germany’s 10-year yield was little changed at 2.96% Britain’s 10-year yield was little changed at 4.78% Commodities

Brent crude rose 0.8% to $101.27 a barrel Spot gold rose 0.2% to $5,086.83 an ounce This story was produced with the assistance of Bloomberg Automation.

–With assistance from Shikhar Balwani and Subrat Patnaik.

©2026 Bloomberg L.P.