US Spends $4 Billion on Initial Strikes in Tehran, Triggering Global Market Turmoil

The U.S. military launched a series of precision airstrikes on strategic locations in Tehran on March 1, 2026, with operational costs estimated at $4 billion in the first phase. The strikes targeted missile storage facilities and command centers linked to Iran’s Revolutionary Guard, as part of a broader response to recent regional attacks on U.S. interests. The expenditure reflects the scale and technological intensity of the operation, involving long-range cruise missiles, stealth aircraft, and electronic warfare assets. The rapid escalation in U.S.-Iran relations triggered a sharp risk-off sentiment across global markets. The CBOE Volatility Index (^VIX) surged by 68% within 24 hours, signaling a dramatic spike in investor anxiety. In the energy sector, crude oil futures (CL=F) jumped 14% in early trading, reaching $118 per barrel, as markets priced in potential supply disruptions from the Persian Gulf. The disruption risk stems from Iran’s ability to target shipping lanes and oil infrastructure in the region, with even limited conflict threatening global energy flows. Defense stocks reacted strongly, with Lockheed Martin (LMT) rising 9% on increased expectations of sustained defense spending and future procurement. The market also priced in long-term geopolitical premiums, with Treasury yields dropping as investors shifted to safe-haven assets. Regional stock indices in Europe and Asia saw declines of 2–4%, while currency pairs like the U.S. dollar and yen strengthened due to safe-haven demand. The broader implications include potential shifts in global supply chains, heightened insurance premiums for maritime shipping, and increased defense budgets among NATO and Indo-Pacific allies. The situation remains fluid, with further military or diplomatic developments expected to influence market trajectories over the coming weeks.