Weekly Market Commentary: Stocks Decline Amidst Middle East Tensions

Sunflower Bank Weekly Market Commentary: March 16, 2026

Each week, our Wealth Management team analyzes the U.S. stock market and bond market activity and news of the previous week, summarizing their findings into a weekly market update report. The key points of this week's commentary, "Stocks Decline Amidst Middle East Tensions," include:

• Equity indexes across the globe declined last week as geopolitical headlines dominated the tape. The S&P 500 declined -1.6%, the Nasdaq 100 slipped -1.0%, and the Russell 2000 decreased -1.7%. Notably, US stocks outperformed International equities for the second consecutive week.
• As we discussed in last week’s note, tensions in the Middle East have created an oil shock as Iran has effectively closed the Strait of Hormuz. Approximately 20 million barrels of oil, equivalent to 20% of global demand, pass through this waterway each day. West Texas Intermediate crude oil ended the week at $99 per barrel, and Brent crude closed at $103 per barrel. In an attempt to ease the energy supply crunch, International Energy Administration member countries agreed to immediately release 400 million barrels of oil from strategic reserves held across the globe – the largest ever reserve release.
• Stocks sold off and bond yields rose across the curve as market participants react to the possibility of a surge in inflation. Reflecting this risk, interest rate futures markets no longer fully price in a rate cut this year.

  
  

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