Iran's nationwide internet blackout, initiated after coordinated U.S.-Israeli strikes on February 28, has persisted into its second week. The disruption is fueling growing concerns over regional instability and its impact on global energy markets.
- Internet blackout in Iran has lasted over 13 days as of March 7, 2026
- Crude oil futures (CL=F) rose 7.3% to $94.80 per barrel amid market volatility
- VIX index reached 34.2, indicating elevated investor fear
- Energy sector ETF (XLE) gained 5.1% over five days
- Defense stocks including LMT and RTX rose 6.7% and 5.4% respectively
- U.S.-Israeli strikes on February 28 targeted military and nuclear sites in Tehran and Isfahan
The Iranian government maintained a near-total internet blackout across the country for over 13 days as of March 7, 2026, according to monitoring data. The outage began shortly after a series of precision strikes targeting military and nuclear-related facilities in Tehran and Isfahan, believed to be carried out by U.S. and Israeli forces. The disruption has severely curtailed communication, financial transactions, and access to international information networks, with only limited data services restored in select areas. The extended blackout underscores a significant escalation in regional tensions, raising alarm among global policymakers and markets. As of March 7, the VIX index stood at 34.2, reflecting elevated investor anxiety. Crude oil futures (CL=F) surged 7.3% in early trading, reaching $94.80 per barrel, while the S&P 500 Energy Select Sector ETF (XLE) rose 5.1% over the past five days. These movements signal heightened risk aversion and increased demand for defensive assets amid fears of broader military conflict. Energy and defense sectors have seen robust capital inflows, with defense contractors such as Lockheed Martin (LMT) and Raytheon Technologies (RTX) posting gains of 6.7% and 5.4%, respectively, over the same period. Analysts note that the cyber and communications infrastructure damage in Iran may have long-term implications for regional supply chains and energy logistics, particularly for pipelines and export terminals in the Persian Gulf. The situation remains fluid, with no official statements from Iran’s leadership on the duration of the blackout or the status of retaliatory planning. Global markets are closely monitoring developments for signs of further escalation, especially regarding potential disruptions to oil flows through the Strait of Hormuz.