The Digester

Dow futures plunge 800 points as oil spikes and Iran conflict fears grow

Mar 3rd 2026

U.S. futures tumbled as oil jumped on reports the Strait of Hormuz was closed and drone strikes hit the U.S. embassy in Riyadh, raising fears the U.S.-Iran conflict could persist and push inflation higher.

  • Dow futures fell about 832 points while S&P 500 futures dropped 1.7% and Nasdaq 100 futures fell 2.2%
  • Brent crude surged roughly 9% and WTI rose about 8% on concerns over Middle East supply disruptions
  • An Iranian Revolutionary Guard commander said the Strait of Hormuz is closed and warned ships attempting passage would be set ablaze, Reuters reported
  • The U.S. embassy in Riyadh was hit by drones and President Trump warned the conflict could continue for more than four weeks
  • Global markets sold off, with the Stoxx 600 down about 2.7% and South Korea’s Kospi plunging 7.24% while local defense stocks rallied
  • Investors are watching upcoming earnings from CrowdStrike, Broadcom and Costco after Target beat fourth-quarter expectations and boosted premarket trading

Sources

cnbc.com