S&P 500 loses $3.5 trillion in market value due to escalating Iran conflict

Approximately $3.5 trillion in market capitalization has “disappeared” from the S&P 500 index since the outbreak of the Iran conflict, reflecting growing investor concerns over geopolitical risks. The U.S. stock market is under pressure as Middle East tensions escalate, raising fears of oil supply disruptions, rising inflation, and slowing economic growth. Major indices like the S&P 500 and Nasdaq have both declined sharply, with Nasdaq entering correction territory.

Energy prices have surged due to ongoing fears of disruptions at the Strait of Hormuz, continuing to put pressure on the market. Analysts warn that volatility will persist as the market reacts to new developments in the conflict.