Dow plunges over 1,000 points as oil spikes on Middle East tensions

update24 news March 03, 2026

Dow plunges over 1,000 points as oil spikes on Middle East tensions

Iran expands strikes across Middle East, forcing Gulf states closer to US

U.S. stocks plunged on Tuesday as investors eye growing tensions in the Middle East and their potential effects on inflation and global trade.

The Dow Jones Industrial Average fell 1,100 points, or 2.25%, while the Nasdaq Composite and S&P 500 fell 2.27% and 2.13%, respectively.

Investors feared that the higher oil prices could fuel inflation and complicate central bank policy decisions already strained by tariff-driven price increases.

US ‘SITTING ON SIGNIFICANT PROVEN RESERVES’: ANALYST SAYS AMERICA CAN WITHSTAND IRAN ENERGY SHOCK

Wall Street traders.

Traders work on the floor at the New York Stock Exchange in New York City, on March 3, 2026. (Brendan McDermid/Reuters)

International benchmark Brent crude was up more than 7% at $83 a barrel on Tuesday, while West Texas Intermediate crude climbed over 7.5% to $76 per barrel. WTI's two-day gain of almost 14% is the largest in four years.

The 10-year Treasury yield touched its highest level in more than a week and investors pushed back expectations for a 25-basis-point interest rate cut by the Federal Reserve to September from July, according to LSEG-compiled data.

Tehran's threat to attack any vessel attempting to transit the Strait of Hormuz, combined with production halts by several Middle Eastern oil and gas producers, has driven up global shipping rates and prices of crude and natural gas.

An aerial view Port of Fujairah, United Arab Emirates in the strait of Hormuz

An aerial view of Port of Fujairah, United Arab Emirates, in the Strait of Hormuz, Dec. 10, 2023. (Reuters)

OIL MARKETS ON EDGE AS IRAN MOVES TO RESTRICT VITAL STRAIT OF HORMUZ SHIPPING LANE, REPORT SAYS

The strait, a critical choke point, carries roughly one fifth of the world's total oil consumption.

"Investors worry about additional inflation coming down the road. The main concern is that (oil prices) goes to over $100 a barrel and stays there," said Robert Pavlik, senior portfolio manager at Dakota Wealth.

Ticker	Security	Last	Change	Change %
I:DJI	DOW JONES AVERAGES	47908.64	-996.14	-2.04%
SP500	S&P 500	6755.81	-125.81	-1.83%
I:COMP	NASDAQ COMPOSITE INDEX	22311.585866	-437.27	-1.92%

GET FOX BUSINESS ON THE GO BY CLICKING HERE

Reuters contributed to this report.

2026 Trends AI Automation BreakingNews Climate Policy EU News EU Policy GlobalPolitics

Post a Comment

0 Comments