The S&P 500 Has Erased Every Loss From the Iran War. Here Is Why Long-Term Investors Who Stayed the Course Are Being Rewarded Right Now

The S&P 500 has fully recovered losses incurred after the Iran war and is now higher than at the conflict’s outset. The piece credits a fragile ceasefire, resilient earnings expectations (Wall Street projecting >16% S&P 500 earnings growth for Q1 2026) and historically quick market rebounds after major wars for the rally. Although oil spiked above $100/barrel when the Strait of Hormuz was effectively closed, the sell-off proved modest and investors have preferred to stay invested given strong corporate earnings outlooks. The article counsels long-term discipline rather than short-term market timing, framing the recovery as a milestone that rewards buy-and-hold investors.