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Markets from stocks to bonds to crypto took a major hit and oil prices continued to push higher as conflict in the Middle East showed signs of widening and escalating on its fourth day .
Stock Market Plunge
Stocks sold off sharply, with the Dow industrials dropping more than 1,000 points. The index is on track for its biggest one-day decline since April 2025, when markets were convulsing after President Trump imposed broad tariffs on U.S. imports .
Stocks in Europe and Asia skidded as well; the two regions are more exposed to Middle Eastern energy supply disruptions than the U.S .
Oil and Energy Surge
Futures for Brent crude, the global oil benchmark, briefly topped $85 a barrel for the first time since mid-2024 . European natural-gas prices soared more than 30%, extending Monday’s surge .
Concerns that higher energy prices could boost inflation propelled U.S. Treasury yields higher. The 10-year yield reached 4.1%, having topped 4% on Monday .
Strait of Hormuz Crisis
Fears regarding access to the critical Strait of Hormuz mounted, with over 3,000 ships stuck waiting for passage . The strait is a vital chokepoint through which about 20% of global oil passes .
Conflict Escalation
U.S. officials indicated strikes against Iran will continue for weeks and grow in intensity, while Tehran continued to attack Gulf countries, stoking concerns of a wider regional conflict .
The escalating violence has raised alarms about potential supply disruptions and broader economic fallout as the conflict enters its fourth day with no end in sight .
