Markets Tumble, Oil Spikes 5% as Trump Vows More Iran Strikes

Markets Tumble, Oil Spikes 5% as Trump Vows More Iran Strikes

Financial markets plunged and oil prices surged Thursday after U.S. President Donald Trump pledged further military action against Iran, rattling investors with the prospect of escalating conflict in the Middle East.

Wall Street's main indexes fell sharply. The Dow Jones Industrial Average dropped over 600 points, a decline of 1.2%, while the S&P 500 index fell 1.1% [118786][118929]. The technology-heavy Nasdaq composite saw steeper losses, falling 1.6% [118929].

The sell-off was triggered by a public statement from President Trump, who promised continued U.S. attacks but provided no clear plan or timeline for de-escalation [119348][118929]. This lack of a calming message created immediate uncertainty, leading investors to seek safer assets [119348][118786].

The geopolitical anxiety fueled a sharp jump in oil prices. The price of U.S. crude oil rose above $110 per barrel as traders feared potential disruptions to supplies from the critical region [118929][119348].

European markets also finished mostly lower, reflecting a global wave of caution [119376]. Analysts say the market moves highlight investor concern that prolonged instability could disrupt global trade and economic stability [118929]. The divided performance on some indexes reflects a "wait-and-see" approach as traders assess the risk of a wider regional conflict [119376].