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Iran war and oil spike triggered a sharp selloff across global equities and ETFs in March.
Leveraged ETFs tied to oil, volatility and inverse tech delivered outsized gains.
In late March, the Fed offered assurance on the U.S. inflation, which is a plus for gold ETFs like GLD.
March 2026 can easily be credited to the Iran war and a severe oil market crisis. Due to the war in the Middle East, oil prices shot up, and the global market tumbled. Even the safe-haven asset gold failed this time around.
Brent crude oil prices hit their highest level since June 2022 in March 2026, reaching about $120 per barrel on March 9. WTI crude, too, surpassed the $100-level in March. State Street SPDR S&P 500 ETF Trust (SPY - Free Report) lost about $7.9% over the past month (as of March 30, 2026), Invesco QQQ Trust, Series 1 (QQQ - Free Report) retreated 8.2%, and State Street SPDR Dow Jones Indust Avg ETF Trust (DIA - Free Report) dropped 7.6%.
Small-cap ETF iShares Russell 2000 ETF (IWM - Free Report) slumped 9.2% while SPDR Gold Trust (GLD - Free Report) shed 15.4% as the greenback gained. Invesco DB US Dollar Index Bullish Fund (UUP - Free Report) rose 2.4% over the past month (as of March 30, 2026). All-world ex U.S. fund iShares MSCI ACWI ex US ETF (ACWX - Free Report) also plunged 9.4%.
Iran War Update
The United States and Israel launched coordinated strikes on Iran on Feb. 28, 2026, with President Donald Trump stating that the operation aimed to destroy Iran’s nuclear program and weaken the current regime.
The attacks prompted immediate retaliation from Iran, which included launching missiles toward U.S. military assets and infrastructure across the Gulf region, including locations in Bahrain, the United Arab Emirates and Qatar.
Crisis in the Strait of Hormuz
The main crisis emerged from the Strait of Hormuz, a vital chokepoint through which roughly one-fifth of global oil and liquefied natural gas supplies pass daily. By the end of the month, the Strait remained closed as Iranian forces reportedly warned vessels against transiting the waterway.
The data provided by shipping analysts Kpler shows 99 vessels passing the narrow strait so far this month, an average of just 5-6 vessels a day (as quoted on BBC), despite periodic attacks on shipping in the area by Iranian forces.
While some energy and daily goods are still moving through one of the world's busiest shipping lanes, daily traffic is down about 95% since the start of the war. Before the war, about 138 ships used to pass through the strait each day, according to the Joint Maritime Information Center, as quoted on the BBC.
Diplomacy on the Way?
Late-month signals suggest that Trump may end the Iran conflict even if the Strait of Hormuz stays largely closed, The Wall Street Journal reported, per Reuters, as quoted on Yahoo Finance.
Yet risks persist as Iran is likely to impose transit fees on vessels passing through the Strait of Hormuz, while Iran is also urging Houthi attacks on Red Sea shipping. Moreover, Kuwait Petroleum Corp. reported a tanker attack near Dubai -- signaling unstable diplomacy, per Bloomberg, as quoted on Yahoo Finance.
Oil Market in Backwardation: Is Energy Market Complacent?
Despite the volatility, the oil market has entered backwardation, where near-term prices are higher than those for future delivery, as quoted on CNBC. Despite expectations of a resolution, risks remain significant. Damage to energy infrastructure could take years to repair. Hence, we do not expect the oil to return to the pre-war levels soon (read: Oil Could Surge to $200 if Conflict Continues: Energy ETFs in Focus).
Crash in “Mag 7” Stocks
The “Magnificent Seven” tech stocks lost more than $850 billion in combined market value last week. Meta had its worst week since October 2025, falling over 11% after losing a landmark social media lawsuit. Microsoft is on track for its worst quarter since 2008, per Mexc. Roundhill Magnificent Seven ETF (MAGS - Free Report) fell 10% past month (as of March 30, 2026).
No Near-Term Inflation Threat
On the monetary policy front, Federal Reserve Chair Jerome Powell reassured markets that risks of contagion in the private credit market remain low. He also indicated that inflation pressures appear contained for now.
ETF Winners
Against this backdrop, below we highlight a few winning leveraged ETFs from last month.
MicroSectors Gold Miners -3X Inverse Leveraged ETNs (GDXD - Free Report) – Up 111.7% past month (as of March 30, 2026)
Defiance Daily Target 2x Short QBTS ETFQBTZ – Up 91%
Defiance Daily Target 2x Short IONQ ETF (IONZ - Free Report) – Up 87.1%
View the Zacks #1 Rank List
Image: Bigstock
Best-Performing Leveraged ETFs of March
Key Takeaways
March 2026 can easily be credited to the Iran war and a severe oil market crisis. Due to the war in the Middle East, oil prices shot up, and the global market tumbled. Even the safe-haven asset gold failed this time around.
Brent crude oil prices hit their highest level since June 2022 in March 2026, reaching about $120 per barrel on March 9. WTI crude, too, surpassed the $100-level in March. State Street SPDR S&P 500 ETF Trust (SPY - Free Report) lost about $7.9% over the past month (as of March 30, 2026), Invesco QQQ Trust, Series 1 (QQQ - Free Report) retreated 8.2%, and State Street SPDR Dow Jones Indust Avg ETF Trust (DIA - Free Report) dropped 7.6%.
Small-cap ETF iShares Russell 2000 ETF (IWM - Free Report) slumped 9.2% while SPDR Gold Trust (GLD - Free Report) shed 15.4% as the greenback gained. Invesco DB US Dollar Index Bullish Fund (UUP - Free Report) rose 2.4% over the past month (as of March 30, 2026). All-world ex U.S. fund iShares MSCI ACWI ex US ETF (ACWX - Free Report) also plunged 9.4%.
Iran War Update
The United States and Israel launched coordinated strikes on Iran on Feb. 28, 2026, with President Donald Trump stating that the operation aimed to destroy Iran’s nuclear program and weaken the current regime.
The attacks prompted immediate retaliation from Iran, which included launching missiles toward U.S. military assets and infrastructure across the Gulf region, including locations in Bahrain, the United Arab Emirates and Qatar.
Crisis in the Strait of Hormuz
The main crisis emerged from the Strait of Hormuz, a vital chokepoint through which roughly one-fifth of global oil and liquefied natural gas supplies pass daily. By the end of the month, the Strait remained closed as Iranian forces reportedly warned vessels against transiting the waterway.
The data provided by shipping analysts Kpler shows 99 vessels passing the narrow strait so far this month, an average of just 5-6 vessels a day (as quoted on BBC), despite periodic attacks on shipping in the area by Iranian forces.
While some energy and daily goods are still moving through one of the world's busiest shipping lanes, daily traffic is down about 95% since the start of the war. Before the war, about 138 ships used to pass through the strait each day, according to the Joint Maritime Information Center, as quoted on the BBC.
Diplomacy on the Way?
Late-month signals suggest that Trump may end the Iran conflict even if the Strait of Hormuz stays largely closed, The Wall Street Journal reported, per Reuters, as quoted on Yahoo Finance.
Yet risks persist as Iran is likely to impose transit fees on vessels passing through the Strait of Hormuz, while Iran is also urging Houthi attacks on Red Sea shipping. Moreover, Kuwait Petroleum Corp. reported a tanker attack near Dubai -- signaling unstable diplomacy, per Bloomberg, as quoted on Yahoo Finance.
Oil Market in Backwardation: Is Energy Market Complacent?
Despite the volatility, the oil market has entered backwardation, where near-term prices are higher than those for future delivery, as quoted on CNBC. Despite expectations of a resolution, risks remain significant. Damage to energy infrastructure could take years to repair. Hence, we do not expect the oil to return to the pre-war levels soon (read: Oil Could Surge to $200 if Conflict Continues: Energy ETFs in Focus).
Crash in “Mag 7” Stocks
The “Magnificent Seven” tech stocks lost more than $850 billion in combined market value last week. Meta had its worst week since October 2025, falling over 11% after losing a landmark social media lawsuit. Microsoft is on track for its worst quarter since 2008, per Mexc. Roundhill Magnificent Seven ETF (MAGS - Free Report) fell 10% past month (as of March 30, 2026).
No Near-Term Inflation Threat
On the monetary policy front, Federal Reserve Chair Jerome Powell reassured markets that risks of contagion in the private credit market remain low. He also indicated that inflation pressures appear contained for now.
ETF Winners
Against this backdrop, below we highlight a few winning leveraged ETFs from last month.
MicroSectors Gold Miners -3X Inverse Leveraged ETNs (GDXD - Free Report) – Up 111.7% past month (as of March 30, 2026)
Defiance Daily Target 2x Short QBTS ETF QBTZ – Up 91%
Defiance Daily Target 2x Short IONQ ETF (IONZ - Free Report) – Up 87.1%
2x Long VIX Futures ETF (UVIX - Free Report) – Up 65.7%
ProShares Ultra Bloomberg Crude Oil (UCO - Free Report) – Up 54.3%