Wall Street Expert Warns of 35% Stock Crash Amid US-Iran War

TheNewsCryptoPublished on 2026-03-09Last updated on 2026-03-09

Abstract

Wall Street expert Ed Yardeni has raised his prediction for a U.S. stock market crash to 35% for the rest of the year, up from an initial 20% forecast. This revision comes amid escalating tensions in the U.S.-Iran war, which has driven oil prices above $100 a barrel. Yardeni also reduced the odds of a market rally influenced by investor enthusiasm to just 5%. The conflict has caused investors to push back expectations for Federal Reserve rate cuts to September, with some betting no cuts will occur in 2026 due to slower economic growth and rising inflation. Additionally, crypto-related stocks are falling, with some firms, like Bitcoin miner Core Scientific, pivoting strategies and selling assets amid the uncertainty.

Ed Yardeni, an expert from Wall Street, has predicted another 35% crash in U.S. stocks, comprising crypto-associated equities. This comes at the time of surging tensions between the U.S. and Iran as the war carries on to surge.

The expert predicted the chances of a stock market crash to 35% for the rest of the year. In the beginning it showed about a 20% fall, but he has now changed his views, seeing the market sentiment.

Meanwhile, he cut the odds of a rally influence more by investor enthusiasm that said fundamentals to only 5% from 20%. This comes amid the escalating U.S.-Iran war and worsening with time. Two days earlier, President Trump threatened to keep hitting the Middle Eastern country at the time of the refusal to retreat by the country.

The Bet on Slashing Rates

The new predictions of Yarden come as oil prices increase over $100 a barrel. A lot of experts are now predicting an elongated conflict in the area that could send energy costs even higher, which could crash crypto stocks further.

At the same time, investors pushed back anticipations for the upcoming Fed rate slash to September. Before the war initiated, traders had completely priced in a move by July. Some of them are also betting the Fed may not slash rates at all in 2026. This comes at the time of slower economic growth and increasing inflation.

In the morning of March 9, Iran named its new supreme leader, Mojtaba Khamenei, the son of Ali Khamenei, who was assassinated by the U.S. This indicated the desire of the government for continuity as Iran witnesses more attacks from the US and Israel nine days into the war.

A lot of crypto-associated firms have started to pivot from their strategies at the time of tensions. For example, Bitcoin miner Core Scientific sold some BTC as it moved to an AI-aimed structure. This witnessed its CORZ crypto stock crash at the time.

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