Dow futures slide after U.S.-Israel strike on Iran as oil surges
Mar 2nd 2026
Futures tumbled and safe havens rallied after joint U.S.-Israeli strikes killed Iran's supreme leader, sending oil sharply higher and raising fears the conflict could disrupt global energy supplies and deepen market volatility.
- Dow futures fell about 571 points, S&P 500 futures lost 1% and Nasdaq 100 futures dropped just over 1%.
- U.S.-Israeli strikes killed Iran's Supreme Leader Ayatollah Ali Khamenei, prompting Iranian vows of retaliation.
- U.S. crude jumped about 8% and gold rose around 2% as investors moved to safe havens.
- Markets are worried fighting could disrupt flows through the Strait of Hormuz, a key global oil chokepoint.
- Wells Fargo said a prolonged Hormuz closure could push the S&P 500 to 6,000 in a worst-case oil shock, while its base case for 2026 remains upbeat.
- Goldman Sachs warned only a severe and sustained oil shock would materially derail global growth, with cyclical sectors most at risk.
- Analysts note this geopolitical shock compounds existing market worries about AI-driven disruption and economic sensitivity to higher energy costs.