US-Iran Tensions, US Economic Data in Focus Next Week

Market Report for Week Ended March 6, 2026

Key Developments

• Geopolitical tensions between the US, Israel, and Iran drove market volatility, contributing to a 3% decline in the Dow Jones Industrial Average and a 2% drop in the S&P 500.
• The US Dollar Index reached a three-month high of 99.7, driven by safe-haven flows and inflation fears stemming from soaring energy costs.
• Oil prices surged, with West Texas Intermediate Crude Oil reaching a 35.6% weekly gain, its largest since 1983, as tensions disrupted supplies and shipping.

Market Performance

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• S&P 500: -2%
• Dow Jones Industrial Average: -3%
• Nasdaq Composite: -1%
• US Dollar Index: 99.7 (three-month high)
• Gold: -1.5% to $5,160 per ounce
• Silver: -10% to $84 per ounce
• West Texas Intermediate Crude Oil: +35.6% to $91 per barrel

Energy Markets

• West Texas Intermediate Crude Oil: surged to $92.6 per barrel, its highest since September 2023, before ending at $91 per barrel.
• Brent-WTI spread: narrowed below $2 per barrel, reflecting US crude demand amid Middle East supply concerns.

Base Metals

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• Aluminium: surged nearly 10% to $3,446 per tonne, its strongest weekly gain since 2024, on supply disruptions in the GCC region.
• Copper: fell 4% to $12,862 per tonne amid a stronger dollar, rising inventories, and China's modest 4.5-5% GDP target.

Outlook

• Markets remain highly sensitive to geopolitical developments in the West Asia, with the US-Iran conflict driving market volatility.
• Upcoming US data, including the CPI, Core PCE Price Index, Preliminary GDP, and JOLTS Job Openings, may influence expectations for Federal Reserve policy.
• Crude oil and aluminium stand to gain most if the conflict deepens.