S&P 500 falls, heads for third-straight losing week as Iran war drags on

The S&P 500 fell on Friday, while oil prices extended their gains as investors awaited further developments in the Iran war.

The broad-based index shed 0.3%, while the Nasdaq Composite declined 0.8%. The Dow Jones Industrial Average were flat.

The benchmark is headed for a 1.3% loss this week, putting it on pace to see its first three-week losing streak in about a year. The 30-stock Dow is heading for a 1.7% slide, while the tech-heavy Nasdaq has fallen 1.1% week to date.

The recent rally in oil prices continued on Friday. West Texas Intermediate crude futures were up more than 1% at around $97 per barrel. Brent futures were higher by more than 1% at roughly $101 a barrel. Brent had closed above $100 for the first time since August 2022 on Thursday.

Stocks are coming off a losing session as oil spiked in the previous session after Iran’s new Supreme Leader Mojtaba Khamenei said that the Strait of Hormuz, a critical route, should remain shut as a “tool to pressure the enemy.” Traffic in the Strait has virtually been halted since the U.S. and Israel launched strikes on Iran at the end of February, leaving investors anxiously awaiting progress on that front.

On Friday, Defense Secretary Pete Hegseth dismissed concerns that the passageway’s closure in the wake of the war breaking out would remain a problem, saying during a press briefing at the Pentagon, “We have been dealing with it, and don’t need to worry about it.”