The Dow Jones Industrial Average fell roughly 400 points as renewed U.S.-Iran attacks pushed crude oil to a six-week high, with equity desks retreating from risk during the session. The move reversed part of the prior week’s gains as Gulf tensions returned to the front of trader positioning.
Brent crude climbed to its highest level in more than six weeks, extending a rally driven by fears of supply disruption across the region. The gain built on earlier advances, with traders pricing in the risk that hostilities could threaten shipments through key transit routes.
Wall Street opened mixed before the broader index turned lower, as energy shares outperformed while cyclical and travel-linked stocks lagged on the higher fuel costs. The divergence left the S&P 500 and Nasdaq trailing the initial gains seen at the open.
The pullback followed a stretch of relative calm that had lifted equities on hopes of de-escalation. Those hopes faded as fresh strikes returned Middle East risk to the center of the session, echoing the earlier surge in crude prices tied to the exchange of strikes between Washington and Tehran.
Oil’s advance carried the clearest read on the conflict. Energy remained the standout sector as crude held its six-week high, while defensive positioning grew across desks wary of further escalation. The benchmark’s climb kept upward pressure on fuel-sensitive industries.
Rate-sensitive corners of the market also drew attention, with traders weighing whether sustained higher oil could complicate the inflation outlook. Any lasting rise in crude feeds through to headline prices, a dynamic that has shaped positioning ahead of upcoming data.
For now, the session left the Dow down about 400 points and Brent at its highest close in over six weeks.