NEW YORK, March 17 - Global stocks extended gains for a second straight session despite surging oil prices driven by escalating conflict in the Middle East.
Israel confirmed the killing of Iran’s security chief, while Tehran rejected de-escalation offers. Attacks on UAE energy infrastructure, including a fire at Fujairah oil terminal and suspended operations at the Shah gas field, have disrupted supply through the Strait of Hormuz.
U.S. crude rose 1.24% to $94.66 a barrel; Brent climbed 1.52% to $101.73-both up over 40% this month.
On Wall Street, all 11 S&P 500 sectors advanced. The Dow gained 432.97 points (0.92%) to 47,379.38, the S&P 500 rose 0.66% to 6,743.38, and the Nasdaq added 0.66% to 22,520.95. MSCI’s global index rose 0.86%.
Investors have scaled back expectations for U.S. Federal Reserve rate cuts-from over 50 basis points earlier this week to just 27 bps by year-end. The European Central Bank is now priced for modest hikes, reversing February’s cut expectations.
“The Fed can’t discern economic patterns amid this conflict,” said Peter Andersen of Andersen Capital Management. “They’ll stay on hold with an unremarkable statement.”
The Reserve Bank of Australia hiked rates to 4.1%, citing war-driven inflation risks. Central banks across the U.S., Europe, Japan, and Canada meet this week-their first since the Iran war began-with markets watching for policy shifts tied to energy shocks.
U.S. 10-year Treasury yields dipped slightly to 4.202% but remain up 25 bps in March. The dollar index fell to 99.53, while the yen strengthened marginally to 158.72 per dollar.