On March 20, 2026, the S&P 500 Index rose by 0.83%, the Dow Jones Industrial Average increased by 0.86%, and the Nasdaq 100 Index climbed 1.06%. This uptick in the stock market coincided with a notable drop in crude oil prices, which plummeted over 4%, and a decrease in the 10-year Treasury note yield to 4.32%. These market movements followed the U.S. administration’s proposal for a 15-point peace plan aimed at resolving the conflict with Iran, which includes rolling back Iran’s nuclear program in exchange for relief from economic sanctions.
Despite the U.S. proposal, Iran dismissed the ceasefire initiative, stating that peace talks are currently unfeasible. Iran has continued its missile and drone attacks on Israel and neighboring Gulf states, provoking military responses, including the interception of a drone by Saudi Arabia. Additionally, concerns persist about escalating regional tensions, with the International Energy Agency reporting that the conflict is affecting approximately 7.5% of global oil supply and could reduce output by 8 million bpd this month due to attacks impacting shipping routes, particularly through the Strait of Hormuz.
In a related economic update, U.S. mortgage applications fell by 10.5% for the week ended March 20, with the 30-year fixed mortgage rate rising to 6.43%. Meanwhile, the U.S. February import index excluding petroleum posted a 1.2% month-over-month increase, outperforming expectations of 0.4%, marking the largest surge in four years.
