Stocks fall after early shock as oil jumps on widening Iran conflict
Mar 3rd 2026
Global markets sold off Tuesday as oil prices climbed on widening Iran conflict fears, leaving the Dow down 403 points after an intraday plunge of more than 1,200 and adding pressure to inflation and borrowing costs.
- The Dow fell 403 points after an early drop of more than 1,200 points, the S&P 500 closed down 0.9% and the Nasdaq lost about 1%.
- Brent crude briefly topped $84 per barrel and settled at $81.40, up 4.7%, while U.S. benchmark crude rose to $74.56, up 4.7%.
- Oil gains followed reports that Iran struck the U.S. embassy in Saudi Arabia and public threats against ships in the Strait of Hormuz.
- President Trump said the U.S. Navy could escort tankers through the strait if necessary to ensure energy flows.
- Markets slid worldwide, with South Korea's Kospi down 7.2%, Tokyo's Nikkei down 3.1% and France's CAC 40 down 3.5%.
- Treasury yields jumped above 4.10% in the morning before pulling back to about 4.06%, raising concerns about higher borrowing costs.
- Nearly three quarters of S&P 500 stocks declined while Target rose 6.7% after reporting stronger than expected quarterly profit.