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March 26, 2026 – 19:10

(Bloomberg) — Skepticism that the US and Iran will reach a ceasefire any time soon pushed oil higher while sending stocks and bonds down, extending a month of volatile trading since the war began.

After briefly trimming losses when Iran reiterated its terms for a deal, the S&P 500 fell about 1.5% as President Donald Trump said he wouldn’t commit to an agreement. Brent climbed 6.5% to around $109. The drop in Treasuries deepened on a weak $44 billion US sale of notes. Benchmark 10-year yields climbed toward their highest since July. Bitcoin and gold retreated.

As the war grinds on, each side has kept up attacks even amid renewed efforts to jawbone the other into a resolution.

Trump threatened Iran with intensified military action after Tehran rejected Washington’s push for a peace deal, with the two sides far apart in efforts to end the near month-long war. Until Iran agrees to stop the conflict, the US will “keep blowing them away,” he said.

Iran responded to a ceasefire proposal through intermediaries overnight, the semi-official Tasnim news agency reported, and is now awaiting a reply. Tehran has a string of conditions for ending the conflict, one of which is a guarantee that the US and Israel won’t resume their attacks.

Trump had set a deadline for Iran to negotiate an agreement to end the war by the end of the week, though the ongoing impasse has raised questions about the likelihood for a deal in that timeframe.

“The progress being made in the talks between the US and Iran seems to be sketchy at best,” said Matt Maley at Miller Tabak.

The US and Israel began a bombing campaign in Iran almost a month ago, leading Tehran to effectively close the Strait of Hormuz snarling the flow of oil and roiling markets. Trump said that Tehran has allowed 10 oil tankers to sail through the vital waterway.

Treasury Secretary Scott Bessent noted the US is starting to see more shipping traffic movement in and out of the Gulf.

Brent, the global crude benchmark is on pace for a monthly gain of almost 50% as the conflict engulfs the energy-rich Middle East and sends shockwaves through the global economy. The near-total closure of Hormuz has meant millions of barrels of lost daily oil output, while supercharging product prices from diesel to jet fuel.

“The war in Iran and the resulting surge in oil prices continue to dampen risk appetite,” said Adam Turnquist at LPL Financial. “Any sustainable market recovery will require meaningful progress toward a peace agreement and a reopening of the Strait of Hormuz.”

Corporate Highlights:

Memory chip stocks extended their losses on Thursday after Alphabet Inc.’s Google publicized research on a new algorithm that could allow more efficient use of the storage needed for artificial intelligence development. Microsoft Corp. executives in recent weeks told managers at major divisions to suspend new hiring, The Information reported, citing three current employees with direct knowledge of the decision. Jefferies Financial Group Inc. posted results that missed Wall Street estimates, dragged down by losses on wayward credit bets. US insurers Equitable Holdings Inc. and Corebridge Financial Inc. are set to merge in an all-stock deal valuing that combined business at $22 billion. Macy’s Inc. has launched an AI-powered shopping assistant that’s upped spending online among those using the new tool, part of the company’s multiyear effort to reverse a sales decline. Henkel AG has agreed buy Olaplex Holdings Inc., the hair-care brand that developed a cult following for its shampoos and other treatments, in a $1.4 billion deal. What Bloomberg strategists say…

“The longer crude holds above the $100 threshold, the more markets settle into a higher volatility regime and price a more persistent macro shock into equities. Stocks need oil to retreat and volatility to compress based on geopolitical tension cooling in a way that traders trust.”

—Michael Ball, Macro Strategist, Markets Live. For the full analysis, click here.

Some of the main moves in markets:

Stocks

The S&P 500 fell 1.4% as of 2:08 p.m. New York time The Nasdaq 100 fell 2% The Dow Jones Industrial Average fell 0.9% The MSCI World Index fell 1.4% Currencies

The Bloomberg Dollar Spot Index rose 0.3% The euro fell 0.3% to $1.1530 The British pound fell 0.3% to $1.3325 The Japanese yen fell 0.2% to 159.74 per dollar Cryptocurrencies

Bitcoin fell 3.6% to $68,425.13 Ether fell 5.5% to $2,047.29 Bonds

The yield on 10-year Treasuries advanced eight basis points to 4.41% Germany’s 10-year yield advanced 12 basis points to 3.07% Britain’s 10-year yield advanced 14 basis points to 4.97% Commodities

West Texas Intermediate crude rose 5.1% to $94.92 a barrel Spot gold fell 2.6% to $4,388.10 an ounce ©2026 Bloomberg L.P.