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March 12, 2026 – 17:26

(Bloomberg) — A renewed oil spike stoked fears the war in Iran will further crimp energy supplies and fuel inflation, spurring a slide in stocks, which were also hit by signs of distress in the $1.8 trillion private-credit market.

Brent held near $100 on shipment disruptions, with Iran’s supreme leader, Ayatollah Mojtaba Khamenei, signaling no intention of ending the Strait of Hormuz closure. The S&P 500 lost 1%. Banks sank as redemption requests from private-credit funds forced Morgan Stanley and Cliffwater LLC to cap withdrawals. Deutsche Bank AG flagged a $30 billion exposure to the sector.

Short-dated Treasury yields jumped as traders no longer fully priced in one Federal Reserve rate cut in 2026. More broadly, global bonds surrendered their 2026 gains. The dollar approached a two-month high. Gold fell.

Oil prices eased slightly from intraday highs after the AFP reported that Iran said it allowed some ships to cross the Strait of Hormuz. Tehran also told the news agency that it is not laying mines in the critical waterway.

The Trump administration plans to waive a century-old maritime law that requires American ships be used to transport goods between US ports as it seeks to blunt surging oil prices, Bloomberg News reported. The US Navy could start escorting tankers through the Strait of Hormuz by the end of March, Energy Secretary Chris Wright told CNBC.

“As long as the bottlenecks around the Strait continue, oil prices will remain elevated, raising the risk that the conflict makes its mark on the economy,” said Bespoke Investment Group strategists.

Goldman Sachs Group Inc. warned that oil prices could exceed the 2008 peak if flows via Hormuz remain depressed through March. Brent rallied to a high of $147.50 a barrel that year on surging demand and stagnating supply.

The Iran war is causing unprecedented turmoil in oil markets, hitting 7.5% of global supply and an even bigger swath of exports, the International Energy Agency said.

“The number one issue facing the markets right now is obviously the war,” said Matt Maley at Miller Tabak. “The conflict in the Middle East is not abating. This caused crude oil to spike. We also have the issue of the growing stress on the credit markets.”

If history is any guide, retreating from markets during periods of heightened volatility is unlikely the best strategy over the long term, according to Ulrike Hoffmann-Burchardi at UBS Global Wealth Management

“But we believe holding sufficient liquidity to cover foreseeable expenses can help investors avoid forced selling in the event of a market drawdown,” she said.

Despite all the concerns about the impacts of the war on the economy, the latest reports haven’t been enough to drive the focus away from geopolitical issues. Still, traders are gearing for Friday’s inflation data: the Fed’s preferred price gauge.

“Once again, the risks to the data could be asymmetric,” said Kyle Rodda at Capital.com. “A benign print will be business as usual. A hot print will raise fears of rising inflation going into the inflationary impacts of an energy crisis.”

With the Fed expected to hold rates steady next week, investor will focus on any eventual changes to the central bank’s outlook.

“The most hawkish outcome would be if the Fed removed its easing bias from the statement, while the median projection shifted from one cut this year to no change,” said Stephen Brown at Capital Economics.

Corporate Highlights:

Blue Owl Capital Inc. defended its recent sale of $1.4 billion of loans from three of its funds, arguing the transaction contained no backstops or hidden incentives, as the asset manager remains a primary target of bets on a private-credit reckoning. Microsoft Corp. and Meta Platforms Inc. each committed nearly $50 billion in additional data center leases in their most recent quarters. A cyberattack on Stryker Corp. has kept the medical technology company’s ordering and shipping systems offline as the firm continues to struggle to address a crippling hack claimed by a group linked to Iran. Bumble Inc. unveiled a new artificial intelligence-powered assistant designed to act as a personal matchmaker. Eli Lilly & Co. warned that the active ingredient in its weight-loss blockbuster Zepbound could pose a risk to patients when mixed with vitamin B12. Dick’s Sporting Goods Inc. forecast full-year sales growth across the company’s namesake brand stores as well as at the newly acquired Foot Locker chain. Dollar General Corp. forecast sales in-line with analyst estimates, slowing momentum for a company that had been exceeding Wall Street expectations. Some of the main moves in markets:

Stocks

The S&P 500 fell 1% as of 12:25 p.m. New York time The Nasdaq 100 fell 1.2% The Dow Jones Industrial Average fell 1% Currencies

The Bloomberg Dollar Spot Index rose 0.4% The euro fell 0.3% to $1.1527 The British pound fell 0.4% to $1.3356 The Japanese yen fell 0.1% to 159.18 per dollar Cryptocurrencies

Bitcoin fell 0.5% to $70,292.01 Ether was little changed at $2,069.08 Bonds

The yield on 10-year Treasuries advanced one basis point to 4.24% Germany’s 10-year yield advanced one basis point to 2.95% Britain’s 10-year yield advanced eight basis points to 4.77% Commodities

West Texas Intermediate crude rose 9% to $95.12 a barrel Spot gold fell 0.8% to $5,133.67 an ounce ©2026 Bloomberg L.P.