The US stock market closed Friday with another selloff, marking the fifth consecutive week of declines. The Dow fell 800 points, entering correction territory, defined as a 10% drop from its peak. The Nasdaq, which entered a correction Thursday, fell an additional 2%, while the S&P 500 finished 1.6% lower. Oil prices continued to climb, with Brent crude surpassing $110 per barrel, adding pressure to investors already nervous about geopolitical tensions. Markets remain unsettled despite President Donald Trump’s announcement this week that he will extend a pause on Iranian energy strikes. Trump has said oil prices and the stock market will stabilize once the conflict ends, but market confidence remains uncertain. Consumer sentiment is also showing signs of strain. A survey from the University of Michigan released Friday found sentiment dropped 6% in March, its lowest level since December 2025. Declines were seen across age groups, political affiliations, and income levels, with middle- and higher-income households showing particularly sharp drops. Inflation expectations rose from 3.4% to 3.8% in a single month, the largest one-month increase since last April, when Trump unveiled his tariff plans. Short-term economic expectations fell 14%, while long-term expectations saw smaller decreases. “These patterns suggest that, at this time, consumers may not expect recent negative developments to persist far into the future,” said Joanne Hsu, director of the Surveys of Consumers. She added that views could change if the Iran conflict continues or energy prices push inflation higher. Economic analysts warn the conflict’s effects are already impacting global growth. The Organization for Economic Cooperation and Development (OECD) revised its global GDP forecast downward Thursday, citing uncertainty from the Middle East conflict. The report stated that disruptions in the Strait of Hormuz and damage to energy infrastructure have caused a surge in energy prices, affecting the supply of key commodities, including fertilizers. The OECD also warned that higher energy costs will drive global inflation upward and predicted that the UK’s economy could be hit harder than any other industrialized nation. The combination of falling stock markets, rising oil prices, and declining consumer confidence highlights the economic risks stemming from ongoing geopolitical tensions in the Middle East. Investors are now facing a market environment shaped by both economic uncertainty and the human and economic costs of conflict abroad. Analysts suggest that unless energy prices stabilize and geopolitical tensions ease, stock market volatility and economic strain may continue into the coming months.