US stocks fell sharply as oil prices surged due to Middle East tensions. The Dow dropped over 500 points, while the S&P 500 and Nasdaq declined around 0.8%.
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US stocks opened sharply lower on Thursday, with major indices retreating as oil prices surged amid escalating tensions in the Middle East and growing concerns over potential disruptions to global energy supplies.
The Dow Jones Industrial Average dropped more than 500 points, or about 1.1–1.2%, extending Wall Street’s recent weakness. The S&P 500 and Nasdaq Composite also declined around 0.8% each at the open as investors reacted to the sharp rise in crude prices.
Oil markets remained volatile after Iran intensified attacks on energy infrastructure across parts of the Middle East. Crude briefly climbed above $100 per barrel before easing slightly. Brent crude futures were up about 7% near $99 per barrel, while West Texas Intermediate (WTI) crude gained roughly 7% to trade around $94 per barrel.
The latest escalation came after Iran’s newly appointed Supreme Leader Mojtaba Khamenei said the Strait of Hormuz should remain closed as a means to pressure adversaries. The remarks heightened fears of supply disruptions in one of the world’s most critical oil shipping routes. Meanwhile, Iraq shut its oil port terminals following strikes on two tankers off its coast, adding to concerns about regional energy flows.
Energy Secretary Chris Wright told CNBC that the US Navy is currently “not ready” to escort oil tankers through the Strait of Hormuz, though he added that such support could be possible by the end of the month. Shipping traffic in the region has slowed significantly as the conflict intensifies.
On the economic front, US labour market data offered some stability. Initial jobless claims stood at 213,000 for the week ended March 7, below economists’ expectations, according to the Labor Department.
Investors are also closely watching inflation trends and the Federal Reserve’s policy outlook. With the latest Consumer Price Index reading largely in line with expectations, markets widely expect the Fed to hold interest rates steady at its upcoming meeting next week. Attention will now shift to the Personal Consumption Expenditures (PCE) price index, the Fed’s preferred inflation gauge, due on Friday.
(Edited by : Ajay Vaishnav)
