Dow tumbles 600 points as oil jumps with Trump saying attacks on Iran to continue
U.S. financial markets fell sharply on Wednesday as investors reacted to escalating tensions in the Middle East after President Donald Trump indicated that military operations against Iran would continue, triggering a sharp rise in global oil prices.
The Dow Jones Industrial Average dropped more than 600 points during trading, while the S&P 500 and Nasdaq also declined as fears of a prolonged conflict weighed on investor sentiment. Energy stocks outperformed the broader market as oil producers benefited from soaring crude prices.
Brent crude climbed above $79 a barrel, while U.S. West Texas Intermediate (WTI) crude surged past $75, fueled by concerns that renewed fighting could disrupt oil supplies through the Strait of Hormuz, one of the world’s most critical energy shipping routes.
Market volatility intensified after Trump declared that the ceasefire with Iran was effectively over and suggested further military action would continue. The remarks came after fresh U.S. strikes on Iranian targets and renewed hostilities following attacks on commercial vessels near the Strait of Hormuz.
Rising oil prices also renewed concerns about inflation, prompting investors to reassess expectations for interest-rate cuts from the Federal Reserve. Higher energy costs could increase pressure on consumers and businesses if the conflict persists, analysts warned.
Despite the sharp sell-off, some market strategists said investors remain focused on whether the latest escalation develops into a broader regional conflict or proves to be another short-term geopolitical shock. Until there is greater clarity, however, markets are expected to remain volatile as developments in the Middle East continue to influence global energy prices and investor confidence.
