Stocks Tumble and Oil Extends Rally as Iran Conflict Widens 3/3/26

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Carl Quintanilla (0:50)

Market moving insight and analysis. Join Jim Cramer, David Faber and me, Carl Quintanilla on the opening bell hour of CNBC Squawk on the Street.

Good Tuesday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer, David Faber at Post 9 of the New York Stock Exchange. Stocks do look to open roughly where we started the day yesterday, maybe a bit below. As the Iran War intensifies, the president says it could go on, quote, far longer than four weeks. Oil goes to 77 Bonds begin to price in fewer rate cuts. Our roadmap begins with this rising geopolitical risk for investors amid fears of a spreading and prolonged Mideast War. The president says, quote, wars can be fought forever.

David Faber (1:36)

Plus the new warning signs for the private credit market. This is Blackstone sees a surge in withdrawals from one of its flagship private credit funds. It's an interview you're not going to want to miss. An hour and a half from now, John Gray is going to join us right here on set at Post 9 Talk about that. Be read and a host of other topics. And OpenAI making changes to its Pentagon deal. This is its CEO Sam Altman says it looked, quote, opportunistic and sloppy.

Carl Quintanilla (2:05)

Let's begin with future sliding again today and oil prices extending yesterday's gains. Fears of a prolonged Middle East conflict, rattling stock markets worldwide. Now in its fourth day, Brent goes to 85, highest level since July of 24 Matt gas pacing for the worst week since March 2022 Jim retail gas now is probably going to go at 311 And the two-year, about a one-month high, it's getting harder and harder to see how worse has a path to cut more rates.

Jim Cramer (2:33)

Well, I agree. I think that one of the problems we have is that if you take out the head of the snake, the snake dies. It turns out that there are a lot of different instructions given to a lot of different people in Iran to continue to fire drones. You know, it's funny when you look at all the people talking about how it's not a problem right now for all the countries. I think Zelensky knows better than anybody in Ukraine. He comes out and just says, the world isn't ready. No patriot air defense systems, even with as many batteries as the Middle East has, could withstand the number of the shaheads, their drones, that Ukraine handles today. Why? Well, because 300 and 500 is just impossible. There aren't that many missiles. I think that's what people are realizing. The Middle East turned out to be very wealthy. They have a lot. But David, you know, when you look at what they've got versus the cheap drones, this has always been the issue. Do you spend a lot of money and get very expensive missiles to shoot down cheap drones? Or do you come up with new technology?

So Lesky says we don't have the technology right now.

David Faber (3:30)

Yeah, well, I mean, there is some criticism already that we should have that there should have been better adopting of the plan that has been in place in Ukraine in terms of the layered system for taking out things again, as you say, having more symmetry in terms of using machine guns to take out a drone as opposed to a million plus dollar anti missile missile because it's hard to keep using those. But I guess today and overall, the market is reflecting what that it wasn't yesterday, Jim.

Jim Cramer (3:58)

Well, I think that there was a sense that we were going to win. And yes, the president talked about he was kind of giving you a you pot. Look, he's going to under promise, he's going to over deliver. And today it just looks like, well, it turns out they have a lot more drones. They're shooting all over the place. A lot of different. They're going after our allies. They're not really targeting Israel as much.