Stocks Decline as Iran Jitters Spur Rally in Oil: Markets Wrap

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April 23, 2026 – 20:29

(Bloomberg) — A fresh bout of volatility rattled markets, with stocks falling as oil rose on concern about an escalation of the conflict in the Middle East that could prolong the Strait of Hormuz closure, worsening energy disruptions.

The standoff drove Brent to around $105. Iran’s Mehr news agency reported air defense systems were activated in parts of Tehran to counter “hostile targets.” A record-breaking rally in the S&P 500 paused, with the index dropping as much as 1.3% before paring its decline.

President Donald Trump ordered the US Navy to shoot any boat putting mines in the strait, while the military said it intercepted two oil supertankers that tried to evade its effort to prevent passage to and from Iranian ports.

Tehran noted it will not take part in negotiations while a US naval blockade on its ports is in place, and Iran state TV cited the foreign ministry as saying its armed forces are ready to respond to further threats. Meantime, Israel’s defense minister said his country is poised to resume the war.

Traffic through the Strait of Hormuz remains largely frozen, with only occasional movements of Iran-linked vessels breaking the lull.

“There’s a fair bit of uncertainty when it comes to diplomacy between the two sides,” said Fawad Razaqzada at Forex.com. “Less comforting is the ongoing lack of clarity around the Strait of Hormuz. With no clear plan to reopen it, uncertainty remains elevated.”

Trade also sifted through earnings. Software shares got hit as International Business Machines Corp. and ServiceNow Inc.’s results failed to ease concerns about artificial-intelligence disruption. Tesla Inc. slid after boosting its spending plan. Texas Instruments Inc.’s solid outlook lifted chipmakers for a 17th straight day.

Despite lingering geopolitical risks, the S&P 500 is poised for its best month since 2023 amid strong corporate profits, the revival of the AI trade and an otherwise resilient economy. Nearly 80% of the US equity benchmark’s firms have beaten first-quarter earnings estimates so far, according to data compiled by Bloomberg.

While volatility understandably increased with the onset of the Iran conflict, financial markets have proven relatively resilient, noted Adam Hetts and Oliver Blackbourn at Janus Henderson.

“Investors coalesced around the critical assumption that hostilities and the associated disruptions to the global economy would be short lived,” they said. “Our sentiment and positioning indicators showed drawdowns within several market segments reaching capitulation territory and could therefore represent attractive entry points.”

Corporate Highlights:

Warner Bros. Discovery Inc. shareholders voted overwhelmingly to approve a merger with Paramount Skydance Corp., despite widespread opposition to the deal in Hollywood. Meta Platforms Inc. plans to cut 10% of workers, or roughly 8,000 employees, in an effort to boost efficiency and offset its heavy spending on artificial intelligence. Microsoft Corp. is offering voluntary retirement to thousands of its employees in the US. About 7% of the US workforce will be eligible for the buyouts, according to a person familiar with the planning. American Express Co. plans to boost spending on marketing and technology and said its customers’ spending on air travel has been slowing. Honeywell International Inc. said war in the Middle East is hurting revenue, primarily in the process automation unit that serves the customers in the energy industry. Southwest Airlines Co. declined to update its full-year profit guidance as US carriers contend with soaring fuel prices amid America’s protracted war in the Middle East. Spirit Aviation Holdings Inc. is in “very advanced discussions” with the US government on terms of a material financing package, its lawyer Marshall Huebner said Thursday. Super Micro Computer Inc. sank after BlueFin Research wrote that the server company had “lost a significant contract” with Oracle Corp. Comcast Corp. reported first-quarter financial results that exceeded analysts’ estimates with fewer losses among broadband customers, offsetting lackluster growth at its Peacock streaming service. Lululemon Athletica Inc. slipped after naming a Nike veteran as chief executive officer, underscoring investor skepticism that the yogawear brand can recapture the growth of past years. Some of the main moves in markets:

Stocks

The S&P 500 fell 0.4% as of 2:26 p.m. New York time The Nasdaq 100 fell 0.6% The Dow Jones Industrial Average fell 0.4% The MSCI World Index fell 0.4% Philadelphia Stock Exchange Semiconductor Index rose 1.3% Currencies

The Bloomberg Dollar Spot Index rose 0.1% The euro was little changed at $1.1695 The British pound fell 0.2% to $1.3480 The Japanese yen was little changed at 159.54 per dollar Cryptocurrencies

Bitcoin fell 0.7% to $77,924.49 Ether fell 3.4% to $2,310.85 Bonds

The yield on 10-year Treasuries advanced one basis point to 4.32% Germany’s 10-year yield was little changed at 3.01% Britain’s 10-year yield advanced three basis points to 4.94% Commodities

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