Trump’s Bombing Reversal Sends Oil Down 13% and Spurs S&P 500 ETF Rally
Late February U.S. strikes on Iran pushed the S&P 500 ETF below $650 for the first time in months as oil prices rose and tensions spiked. President Trump’s reversal of a bombing threat sent oil prices down over 13% and Treasury yields tumbling, fueling a premarket rally in the ETF.
1. Strikes Push ETF Below $650
Late February U.S. strikes on Iran’s energy facilities triggered a surge in crude prices and geopolitical risk, resulting in the S&P 500 ETF falling below $650 for the first time in months. Investors cited rising oil costs and uncertainty about further escalation as key headwinds.
2. Reversal Sparks Oil Plunge and Rally
On March 23 at 7:05 a.m., the president reversed his threat to bomb Iran’s energy infrastructure via social media, causing oil prices to plunge over 13% and driving Treasury yields sharply lower. The sudden de-escalation fueled a robust premarket rally in the S&P 500 ETF as traders bet on reduced conflict risk.