Iranian Drones Pounding California Could See a Spring Sell-Off in U.S. Stocks,Warns Broker

FomoAnxiety · 2026-03-13T17:53:01+00:00

The potential threat of Iranian drones and rising oil prices may lead to a sell-off in U.S. stocks, particularly if the conflict persists. Analysts warn that sustained high oil prices could negatively impact corporate earnings and U.S. sentiment.

FomoAnxiety

2026-03-13 17:53:01

Generación de resúmenes en curso

The threat of Iranian drones pounding the beaches of California and lingeringly high oil prices could see a Spring sell-off in U.S. stocks.

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Oil Hit to Earnings

Kathleen Brooks, research director at broker XTB, said that global equities may not have been as badly impacted by the Iran conflict as other assets such as major sovereign bonds, but warned that this could be temporary as analysts assess the long-term rise in the oil price on future corporate earnings.

“If the crisis persists into April and beyond, that is when the damage could hit earnings expectations and cause a bigger sell-off in stocks. For now, we expect stocks to oscillate based on news flow,” she said.

Some of that flow sounds pretty scary if you are a resident of California. Plenty of beaches and wine and good times, but it wouldn’t take long for an Iranian drone to spoil the mood.

Souring in U.S. Sentiment

This refers to a story on ABC News that the FBI had sent a warning to police departments in California in recent days that Iran could retaliate for American attacks by launching drones at the West Coast. Apparently, they could be launched from a vessel off the American coast.

“If the US has started a long-term war, demand for US-based assets could get eroded, and earlier reports that Iranian drones could hit California may also lead to a souring of sentiment towards U.S. stocks,” Brooks said.

There is still hope among equity investors that the oil price spike is only temporary if the war ends soon. However, if it drags on and even spreads with today the prospect of U.S. Marines boots on the ground, then equity investors will not be able to ignore the risks.

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