Widespread internet outages in Iran persisted into a second day on March 2, 2026, following coordinated U.S.-Israel cyber operations and airstrikes. The disruption coincides with heightened regional tensions and raises concerns over energy market stability and defense sector exposure.
- Over 75% of Iran's internet traffic disrupted on March 2, 2026
- Crude oil futures (CL=F) rose 4.3% to $98.70/bbl
- Raytheon (RTX) up 5.1%, Lockheed Martin (LMT) gained 4.6%
- CBOE Volatility Index (^VIX) reached 28.4
- Cyberattacks targeted power grid and financial systems
- U.S.-Israel strikes reportedly hit missile facilities near Isfahan and Qom
Internet connectivity across Iran remained severely degraded on March 2, 2026, marking the second consecutive day of systemic outages following a series of strikes and cyber intrusions attributed to U.S. and Israeli intelligence units. Reports indicate that over 75% of domestic internet traffic was disrupted, with major service providers including Telecommunication Company of Iran (TCI) and Irancell experiencing near-total service degradation. The outage coincided with a wave of cyberattacks targeting critical infrastructure nodes, including power grid control systems and financial transaction networks. The escalation follows a weekend of aerial bombardments reportedly aimed at Iranian missile production facilities near Isfahan and Qom. According to state-affiliated monitoring platforms, the combined kinetic and cyber campaign disrupted communication for over 40 million users, exacerbating public unrest and hampering government coordination. The sustained digital blackout has drawn international concern, with the U.S. Department of Homeland Security issuing a rare advisory warning of potential spillover risks to global digital infrastructure. Market indicators reacted swiftly: Crude oil futures (CL=F) surged 4.3% to $98.70 per barrel, reflecting fears of possible supply chain interruptions from the Persian Gulf. Defense stocks also spiked, with Raytheon Technologies (RTX) rising 5.1% and Lockheed Martin (LMT) gaining 4.6%. The CBOE Volatility Index (^VIX) jumped to 28.4, its highest level in 18 months, signaling heightened investor anxiety over regional volatility. The prolonged outage underscores the growing integration of cyber warfare into modern military doctrine. As digital infrastructure becomes a strategic weapon, the risk of cascading economic and geopolitical fallout increases—particularly for energy markets reliant on stable Middle East supply routes and defense contractors exposed to rising global demand for cyber and missile defense systems.