Stocks fell again on Thursday after a brief pause the previous day, as renewed concerns over the Iran conflict pushed oil prices sharply higher. U.S. crude surged past $80 per barrel, intensifying worries about the economic impact of the escalating tensions.
The Dow Jones Industrial Average dropped 784.67 points, or 1.61%, closing at 47,954.74. The S&P 500 declined 0.56% to 6,830.71, while the Nasdaq Composite slipped 0.26% to 22,748.99. The sell-off was led by cyclical companies such as Boeing and Caterpillar, which are typically more vulnerable if global economic growth slows.
Oil prices jumped sharply during the session. U.S. benchmark West Texas Intermediate crude climbed above $80 per barrel for the first time since July 2024 after Iran claimed it struck an oil tanker with a missile. WTI later settled up more than 8% at $81.01 per barrel. Meanwhile, international benchmark Brent crude ended nearly 5% higher at $85.41 per barrel.
The surge in oil caused major swings in the market. The Dow briefly plunged about 1,000 points as oil crossed the $80 mark and was down more than 1,100 points at its lowest level of the day. The S&P 500 and Nasdaq also moved near their session lows after earlier trading slightly above the flatline.
A day earlier, oil prices had stabilized, helping the Dow gain more than 200 points on Wednesday. However, the overall trend remains sharply higher, with WTI crude up more than 20% this week and Brent rising nearly 18%, putting both benchmarks on track for their biggest weekly gains since March 2022.
Tensions remain elevated as Abbas Araghchi, Iran’s foreign minister, said the country is not seeking a ceasefire with the United States or Israel and sees no reason to negotiate.
Market uncertainty has grown as investors assess the potential economic consequences of the conflict. Strategists have raised concerns about the security of oil shipments through the Strait of Hormuz, a key route that carries about 20% of the world’s oil supply. The U.S. government has indicated it may provide escorts and risk insurance for vessels moving through the region, though officials have not given a timeline for when the route will be considered fully safe.
Despite the broader market decline, Berkshire Hathaway stood out as a positive performer, rising more than 2% after the company revealed it had resumed share buybacks for the first time since 2024. CEO Greg Abel also purchased about $15 million worth of the company’s stock.
