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

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

Former Qatari Prime Minister Sheikh Hamad Bin Jassim Al Thani joins ‘Mornings with Maria’ to react to Iran’s strikes on GCC nations, warning Tehran has “lost friends” and saying the attacks could push Gulf states closer to the 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

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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.

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.

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An aerial view 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 chokepoint, 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 47709.65 -1,195.13 -2.44%
SP500 S&P 500 6718.94 -162.68 -2.36%
I:COMP NASDAQ COMPOSITE INDEX 22147.390246 -601.47 -2.64%

The 10-year Treasury yield climbed to 4.07% on inflation angst.

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Reuters contributed to this report.

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