Dow Falls More Than 1,100 Points as Iran Conflict Drives Oil Prices Higher

U.S. stocks fell sharply Thursday as concerns about an expanding conflict involving Iran sent energy prices higher and rattled global financial markets.

The Dow Jones Industrial Average dropped more than 1,150 points, a decline of about 2.3 percent. The S&P 500 fell 1.42 percent while the Nasdaq slid 1.26 percent as investors reacted to uncertainty surrounding the situation in the Middle East.

Energy prices surged during the trading session. U.S. crude oil jumped about 8.5 percent to just over $81 per barrel, its highest level since mid-2024. Brent crude, the international benchmark, climbed nearly 5 percent to around $85.30 per barrel.

Analysts say the biggest concern for markets is the potential disruption to global oil supplies, particularly through the Strait of Hormuz, one of the world’s most critical shipping routes for energy exports.

Data from S&P Global Commodities at Sea indicated that no oil tankers traveled through the Strait of Hormuz on Wednesday as insurers and shipping companies avoided the region due to the conflict.

The surge in oil prices could also complicate the Federal Reserve’s efforts to control inflation, potentially putting additional pressure on financial markets.

Markets overseas also saw losses. Europe’s Stoxx 600 index fell about 1.3 percent while Germany’s DAX dropped roughly 1.6 percent.

Investors have also moved toward safer assets. The U.S. dollar strengthened against other major currencies, and the market volatility index, often referred to as Wall Street’s “fear gauge,” jumped sharply.

Analysts say markets will continue to closely watch developments in the Middle East as uncertainty over the conflict remains high.

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