Quick overview

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Conflicting signals from Iran and the United States kept markets on edge, as hopes for progress that could restore shipping through the critical Strait of Hormuz remain uncertain.

U.S. equities extended losses on Thursday, March 26, after President Donald Trump said the U.S. was not sure it could—or even wanted to—reach a peace agreement with Iran, triggering a rise in oil prices. Markets continue to show heightened volatility, as investors react to conflicting headlines surrounding the conflict.

Trump stated that Iran was desperate to strike a deal to end the fighting, contradicting the Iranian foreign minister, who said Tehran was reviewing a U.S. proposal but had no intention of entering talks to scale back the war.

The selloff accelerated after Trump signaled reluctance to commit to an agreement, compounded by reports of thousands of U.S. troops being deployed to the region.

Against this backdrop, the Dow Jones Industrial Average fell 1% to 45,959.43 points; the S&P 500 dropped 1.7% to 6,478.41; and the Nasdaq Composite declined 2.4% to 21,408.08.

The S&P 500 posted its largest daily drop in two months, specifically since January 20.

Trump says Iran is “begging” for a deal

Wall Street’s main indexes had risen in the previous session, driven by expectations that the United States and Iran might be willing to engage in talks to end the conflict. Media reports suggested Tehran had privately signaled openness to dialogue with Washington, while Vice President JD Vance was reportedly considering a trip to Pakistan for negotiations as early as this weekend.

On Thursday, Trump posted on social media that Iranian negotiators had been “very different” and “strange,” adding that Tehran was “begging” the United States to reach an agreement to end the conflict, which has now lasted nearly a month in the Middle East.

“They’re begging to make a deal. I don’t know if we can do it. I don’t know if we’re willing to do it. They should have done it four weeks ago,” Trump said.

His remarks added to the confusion surrounding the war. The U.S. and Iran appear far apart on key terms to halt hostilities, while the Pentagon continues to deploy additional ground troops to the Middle East.

Oil climbs back above $100

Oil prices jumped as much as 3.8%, with Brent Crude trading slightly above $100 per barrel after the daily gain, bringing its monthly increase to nearly 40%. Meanwhile, WTI Crude rose by a similar margin to $93.79 per barrel.

Fears are mounting that an energy shock could reignite global inflation pressures, prompting central banks to consider further rate hikes. The Organisation for Economic Co-operation and Development warned of faster price increases and weaker growth if energy prices surge further amid a prolonged conflict.

Reports indicate Iran is reviewing a 15-point U.S. peace proposal, although the White House has warned it will intensify airstrikes if no agreement is reached. Press Secretary Karoline Leavitt said Trump “does not bluff and is prepared to unleash hell,” while The Wall Street Journal reported that the president has told advisers he would prefer to end the war quickly.

Key movers on Wall Street

Chip stocks posted sharp losses on Thursday, extending declines from the previous session. Shares of Micron Technology (-7.3%), Western Digital (-7.7%), Seagate Technology (-8.3%), and SanDisk (-11%) all closed lower.

On the upside, Salesforce rose 1.2%, providing support to the Dow. Earlier, the U.S. Department of Labor announced the modernization of its National Contact Center using Salesforce technology and the launch of DOLA, an AI agent developed by Agentforce to assist U.S. workers and retirees.