US stock market: The Israel-US-Iran war has completed four weeks, and a possible ceasefire is still far-fetched. Amid geopolitical tensions in the West Asian region, the US stock market is also experiencing significant, sustained losses, with major indices in a downward trend. Amid concerns that Iran may prolong disruptions to the Strait of Hormuz, the Dow Jones Industrial Average index entered corrective territory on Friday last week after five straight weeks of losses.

Other indices have also fallen, as the S&P 500 index dropped to its seven-month low by retracing around 9% from its record high of 7,002.28. The index had climbed to this peak in January 2026, signalling how the Israel-US-Iran war has affected the US stock market over the past four weeks. In this crash, the Magnificent 7 stocks — Alphabet (GOOGL), Amazon (AMZN), Apple (AAPL), Meta Platforms (META), Microsoft (MSFT), Nvidia (NVDA), and Tesla (TSLA) — which represent around one third of the S&P 500 index, have also registered heavy losses.

During the four weeks of the US-Iran war, the market cap of these Magnificent 7 stocks has fallen by $1.72 trillion. Alphabet stock leads the pack, losing $450 billion in market cap, followed by Meta Platforms, whose shareholders have lost $310 billion during the US-Iran war.

Magnificent 7 stocks market cap loss

During the US-Iran war, the Alphabet share price fell from $311.43 to $273.76. Meta Platforms’ share price nosedived from $648.18 to $525.72 in this time. Among the Magnificent 7 stocks, Microsoft’s stock price crashed from $392.74 to $356.77, resulting in a $270 billion dip in market cap. NVIDIA’s share price crashed from $177.19 to $167.52, resulting in a $230 billion market cap loss during the US-Iran war. Likewise, Apple’s market cap has fallen by $220 billion, Tesla’s by $130 billion, and Amazon’s by $110 billion.

US-Iran war weighs on Wall Street

Highlighting the reasons that are dragging Wall Street indices and the Magnificent 7 stocks of the US stock market, Doug Beath, Global Equity Strategist at Wells Fargo Investment Institute, said the diplomatic dissonance this week between the US and Iran dismayed investors, adding, “By the end of the week, risk appetite could not withstand the fog of war.”

“Any further statements by Trump about a deal are white noise to the markets,” Jim Bianco, president and macro strategist at Bianco Research, wrote in a social media post. “Only if the IRANIANS say the talks are going well will it impact markets.”

The price for a barrel of Brent crude oil climbed 3.4 per cent to settle at $105.32. That’s up from roughly $70 just before the war began. Benchmark US crude rose 5.5 per cent to settle at $99.64 per barrel.

The fear in financial markets is that the war will disrupt the Persian Gulf’s energy industry for a long time. That could keep enough oil and natural gas out of the world’s markets, sending a punishing wave of inflation through the global economy.

Not only would it raise prices for drivers buying gasoline, but it could also push businesses that use any trucks, ships, or planes to move their products, thereby raising their own prices. It would also make electricity from gas-fired power plants more expensive.

If the war continues until the end of June, strategists at Macquarie say oil prices could reach USD 200 per barrel. The record is just above USD 147, set during the summer of 2008. That’s when Iran’s testing of missiles, including one that could reach Israel, and strong demand for oil from China, helped send prices spiking despite the Great Recession.

High gasoline prices and the war are already eroding confidence among US consumers, whose spending accounts for the bulk of the economy. Sentiment among them fell slightly more in March from February than economists expected, according to a survey by the University of Michigan.

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