Dow falls 250 points as oil jumps 4%, Trump warns Iran they ‘better get serious soon’
US stocks experienced a decline on Thursday morning while oil prices surged by 4% following President Trump’s warning to Iranian negotiators to take the peace talks seriously amidst conflicting reports.
By approximately 9:35 a.m. ET, the Dow Jones Industrial Average dropped 250 points, or 0.5%, with S&P 500 and Nasdaq futures also showing decreases of 0.8% and 1.1% respectively.
Brent crude futures, which had briefly fallen below $100 a barrel earlier in the week, rebounded to $106.64, while West Texas Intermediate crude saw a 4% increase to $93.83 per barrel.
Investors are anticipating a swift resolution to the conflict in Iran to normalize oil prices and alleviate gasoline pressure amidst the ongoing blockade of the Strait of Hormuz and the prolonged war.
President Trump’s recent remarks on Iranian negotiators and the rejection of a peace plan by Iranian leaders have heightened tensions, with hopes for progress towards a peace agreement and the reopening of the Strait of Hormuz.
Follow The Post’s latest coverage on the blocked Strait of Hormuz and its lasting effects
“With the S&P 500 approaching major support at its November lows, there is little room for further deterioration before correction territory comes into play,” noted Adam Turnquist, chief technical strategist for LPL Financial.
The Russell 2000 index has rebounded after entering correction territory last week, while the US and Iran continue to assert their positions in the escalating conflict.
The Department of War is reportedly deploying troops to the Middle East, raising questions about the potential escalation of the situation.
Tehran’s control over the Strait of Hormuz is solidified by new legislation imposing fees for safe passage, while Gulf countries condemn Iran’s attacks on neighboring nations and express readiness to defend themselves.
