The Dow Jones Industrial Average tumbled on Friday and fell into correction territory, while Brent traded above $110 after incidents in the Strait of Hormuz exacerbated investors’ energy supply concerns and President Donald Trump’s latest comments failed to encourage traders to scoop up shares.
The 30-stock index cratered 792.67 points, or 1.7%, to 45,167.44.
The S&P 500 index subtracted 108.32 points, or 1.7%, to 6,368.84.
The NASDAQ waned 459.72 points, or 2.2%, to 20,948.36.
The broad market index was headed for its fifth straight weekly decline, dropping around 2% in the period. The tech-heavy NASDAQ slid more than 3% week to date, while the blue-chip Dow has slid nearly 1% for the week.
International benchmark Brent crude futures rose 4.22% at settle at $112.57 per barrel. U.S. West Texas Intermediate futures gained 5.46% to settle at $99.64 a barrel after earlier hitting a session high of $100.04. That marks its highest close since July 20, 2022.
President Donald Trump extended a deadline to attack Iran’s energy infrastructure to April 6, a little over a week after the original deadline that was set to end Friday.
The announcement is the latest signal the Trump administration is seeking an end to the U.S.-Iran war, a conflict that has resulted in surging oil prices that’s already hurting voters at the pump and could cost Republicans their seats in the midterm elections.
Uncertainty remains for investors, after Iran’s foreign minister reportedly told state media this week that Tehran has no intention of holding talks with the U.S., even if its leaders are reviewing an American proposal to end the war.
On top of that, The Wall Street Journal reported that the Pentagon was considering sending another 10,000 troops to the Middle East.
The Strait of Hormuz is closed, Iran’s Islamic Revolutionary Guard Corps has said to the country’s state media, adding that movement through the key waterway will face a harsh response.
Two Chinese ships were turned away from crossing the Strait early Friday, and a Thai-flagged cargo ship that had been hit in the waterway has run aground, Iran state media said.
Prices for the 10-year Treasury slid a bit, raising yields to 4.43% from Thursday’s 4.42%. Treasury prices and yields move in opposite directions.
Oil prices hiked $5.60 to $100.09 U.S. a barrel.
Gold prices revived $130.30 to $4,506.60 U.S. an ounce.
