Stocks were under pressure on Thursday as oil prices added to their surge on supply disruption worries while the Iran war continued.
The Dow Jones Industrials dived 508.55 points, or 1.1%, to greet noon EDT Thursday at 46,901.42.
The S&P 500 index lost 66.34 points, or 1%, to 6,709.46.
The NASDAQ tumbled 291.32 points, or 1.3%, to 22,424.91.
Crude prices continued to climb after Iran’s new Supreme Leader Mojtaba Khamenei — who was appointed on March 9 — said that the Strait of Hormuz should remain closed as “tool to pressure the enemy.” West Texas Intermediate futures traded 9% higher at around $95 per barrel. Brent crude futures advanced 8% to roughly $100 per barrel.
Energy Secretary Chris Wright told reporters Thursday that the U.S. Navy is “not ready” to escort oil tankers through the Strait, though he said it will likely be able to do so by the end of the month. Traffic there has practically reached a standstill as the conflict in the Middle East escalates.
Overnight, three additional foreign vessels were hit in the Persian Gulf, according to authorities. That comes after three separate ships, including one in the Strait, had been struck Wednesday.
Selling was broad on Thursday, with banks and tech stocks in the red. Morgan Stanley led financials lower after capping private credit fund withdrawals. Energy stocks, including Chevron and Exxon Mobil, were among the few stocks in the green.
Prices for the 10-year Treasury were lower, boosting yields to 4.25% from Wednesday’s 4.23%. Treasury prices and yields move in opposite directions.
Oil prices climbed $7.61 to $94.86 U.S. a barrel.
Gold prices dumped $42.00 to $5,137.10 U.S. an ounce.
