Oil Shock: What History Says About the Stock Market and Rising Energy Prices

As of March 20, Brent crude oil was trading at $105 a barrel, up 50% since the onset of the war in Iran. The S&P 500 has declined 5% this month, marking its fourth consecutive week of losses, while the Nasdaq Composite is nearing correction territory with a potential pullback of 10% or more. Historical data indicates that in past oil crises, the S&P 500 has often entered bear markets, with significant declines observed during the 1973-1974 and 2007-2008 periods.