Shortsighted stock market can no longer brush off war: 'It's too hard to ignore $100 oil'

Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., July 20, 2026. Brendan McDermid | ReutersMajor U.S. stock indexes tumbled on Thursday as investors began to price in the consequences of a renewed and prolonged conflict in the Middle East. While the U.S. has conducted strikes against Iran 12 nights in a row — sending both oil prices and Treasury yields higher — domestic equities had mostly brushed off the idea of the war between the two countries heating up again, staying flat while oil jumped. That changed on Thursday, though, when Brent Crude futures jumped above $100 per barrel and the 10-year Treasury yield broke through 4.7%, hitting its highest level since January 2025, after reports of attacks against tankers off the coast of Saudi Arabia. The S&P 500 headed for its biggest decline in a month.Oil prices and S&P 500FactSet"These problems became too big to ignore," said Steve Sosnick, chief strategist at Interactive Brokers, about the move in stocks on Thursday. "It's too hard to ignore $100 oil. It's too hard to ignore 10-year rates that are above 4.70%. It's too hard for the stock market to ignore 30-year rates that are solidly a...