US stocks record biggest drop since start of Iran war

Gokhan ErgocunFriday March 27, 2026

Markets on Thursday traded under a heavy cloud of uncertainty, with the New York Stock Exchange recording its steepest one-day decline since the start of the Iran war amid heightened tensions across the Middle East.

The Dow slid 1.01%, losing 469.38 points to end at 45,960.11.

The Nasdaq Composite fell 2.38%, or 521.74 points, to 21,408.08, while the S&P 500 dropped 1.74%, down 114.74 points, to close at 6,477.16.

The Volatility Index (VIX), commonly dubbed the market’s “fear index,” eased 8.33% to 27.44.

Equities weakened as oil prices climbed on concerns surrounding the regional situation.

Iranian officials said they have no plans to hold direct talks with the US, though they indicated they would reassess the US proposal designed to end the ongoing conflicts.

US President Donald Trump, posting on his social media account, said Iranian negotiators were “begging for a deal,” while also asserting publicly that they were considering the American offer.

Making the case that his interpretation was wronged, Trump added, “They better get serious soon, before it is too late, because once that happens, there is NO TURNING BACK, and it won’t be pretty!”

Speaking during a cabinet meeting, Trump also said the direction of the negotiations with Iran now hinges on Tehran.

He told audiences he expects oil prices to rise further and the stock market to fall further, even as he argued the situation is not as severe as he had previously expected.

Trump further suggested energy costs could tick up slightly more, but said they would eventually return to earlier levels—potentially even lower.

Reflecting the shift in energy expectations, Brent crude gained 5.2% to $107.53 per barrel as of 2000GMT.

In the US economic calendar, initial jobless claims rose to 210,000 for the week ending March 21, coming in slightly below market expectations.

European stocks

Shares in Europe also declined on Thursday. The pan-European Stoxx Europe 600 index fell 1.13% to finish at 580.84.

In the UK, the FTSE 100 slipped 1.33% to 9,972.17. Germany’s DAX 40 fell 1.5% to 22,612.97, while France’s CAC 40 dropped 0.98% to 7,769.31.

Italy’s FTSE MIB 30 ended the session down 0.71% at 43,701.84, and Spain’s IBEX 35 declined 1.21% to 16,962.90.