Dow drops 1,000 as oil spikes on Trump’s Middle Eastern regime change adventure

Stocks are falling sharply on Wall Street Thursday, including a 1,000-point slump for the Dow Jones Industrial Average, as oil prices rise further because of the war with Iran.

The S&P 500 sank 1.3% in afternoon trading, coming off a frenetic start to the week that saw financial markets swerve sharply, sometimes hour by hour. The Dow tumbled 1,046 points, or 2.1%, as of 2:04 p.m. Eastern time, and the Nasdaq composite was 1.1% lower.

Financial markets are again following the cue of oil prices. They’re cranking up the pressure because of worries that a long-term spike could exhaust households’ ability to spend, grind down the global economy and push interest rates higher.

A barrel of Brent crude, the international standard, rose 4.7% to $85.22 That’s up from close to $70 late last week. A barrel of benchmark U.S. crude climbed 8.1% to $80.67. U.S. crude last traded above $80 in August 2024.

Oil prices rose after Iran launched a new wave of attacks against Israel, American bases and countries around the region. The war’s escalations are raising worries about how long disruptions will last for the production and transport of oil and natural gas in the region.

Prices at U.S. gasoline pumps have already jumped because of them. The average price for a gallon is $3.25, up 9% from........

© Fortune