Dow drops nearly 600 points as Iran fighting lifts oil prices

The Dow Jones Industrial Average fell nearly 600 points Wednesday as oil prices jumped more than 6% after Donald Trump said the ceasefire with Iran was “over.” Brent crude rose to about $78.80 a barrel and West Texas Intermediate climbed to about $75, reversing a recent drop that had pushed WTI below $70.

Trump made the remarks while attending the NATO summit in Ankara, Turkey, and he said he did not want to keep dealing with Tehran. The escalation rattled investors because the fighting raised the risk of a disruption in the Strait of Hormuz, the narrow waterway that carries a major share of the world’s oil shipments. If tankers cannot move freely through that chokepoint, energy markets can reprice almost immediately, and the shock can spill into gasoline costs, inflation expectations and the broader market.

The latest move followed reports that the United States launched additional strikes after hitting roughly 80 targets on Tuesday. The fighting intensified after Iran’s Islamic Revolutionary Guard Corps attacked three tankers in the Strait of Hormuz, deepening fears that the conflict could spread beyond military targets and into the global oil trade. That sequence pushed crude sharply higher and put fresh pressure on stocks at the same time.

Markets in Asia and Europe also weakened as the conflict rippled across trading sessions. Analysts warned that if the ceasefire breaks down again, oil prices could climb further and tighten financial conditions just as consumers begin to feel the effect at the pump. Higher fuel costs tend to flow into household budgets quickly, and a sustained spike can weigh on inflation readings that the Federal Reserve watches closely.

The selloff also carried a second-order risk for retirement accounts and other stock-heavy savings. A nearly 600-point drop in the Dow does not just mark a bad day on Wall Street; it also reflects how quickly a geopolitical flare-up abroad can move U.S. markets at home when energy supply lines look vulnerable.