U.S. stocks tumbled on Friday, marking a fifth straight week of losses as the ongoing Iran conflict and risks surrounding the Strait of Hormuz weigh heavily on global markets.
The Dow Jones Industrial Average dropped 1.7% to 45,167, officially entering correction territory—down 10% from its February 10 peak of 50,513. Widely seen as a key barometer of the U.S. economy, the index—often highlighted by President Donald Trump during its rally past 50,000—has now reversed sharply.
Market sentiment remains under pressure amid growing concerns that the war could drag on for weeks or even months, potentially slowing global economic activity.
Uncertainty persists over whether the current decline is a short-term pullback or the beginning of a prolonged bear market tied to geopolitical tensions.
Meanwhile, the Nasdaq 100 also slipped into correction, falling 1.9% to 23,132.77. The tech-heavy index is now down over 11% from its October high, led by continued weakness in major technology stocks that had fueled the recent bull run.
In commodities, U.S. crude rose 4.45% to $98.68 per barrel, while Brent crude climbed to $112.16, though both posted relatively modest weekly changes.
President Trump attempted to downplay the economic impact, calling the conflict a “little detour” and noting that market reactions have been less severe than expected.
The administration maintains that any economic strain will be temporary, with a strong rebound anticipated once the conflict ends.
However, analysts warn that even short-term disruptions—particularly to key shipping routes like the Strait of Hormuz—could trigger broader supply shocks, affecting energy markets, food security, and global trade for months to come.
Although markets briefly responded positively to signs of potential de-escalation, losses resumed after Iran rejected U.S.-backed proposals to end the conflict.
