Stocks on Wall Street opened sharply down Tuesday as investors digested surging oil prices and the realization that the U.S.-Israeli war with Iran is likely deepening instead of abating after days of military strikes.
The Dow Jones Industrial Average fell more than 800 points after the opening bell, reversing a Monday rebound, and the international benchmark for oil — Brent crude — surged 7%, to $83 a barrel.
Within the first 30 minutes of trading, all three major New York stock indexes were down about 2%.
Fears of oil shortages spiked after an Iranian Revolutionary Guard official said Monday that the Strait of Hormuz, a vital oil tanker artery, would be closed and that ships trying to traverse it would be “set ablaze.”
Mr. Trump ordered joint U.S.-Israeli strikes on Iran early Saturday, saying Tehran did not agree to American demands during negotiations over the Islamic republic’s nuclear ambitions, missile programs and support for terrorist proxies in the Middle East.
Tehran retaliated against Israel and U.S. allies after the strikes killed Supreme Leader Ayatollah Ali Khamenei and other top officials, raising fears of a widening and prolonged conflict. Iran also has targeted U.S. military bases.
Stocks plummeted early on Monday, the first day of trading since the war began, but recovered losses later in the day.
Iran targeted the U.S. embassy in Riyadh, Saudi Arabia, and Israel continued to attack Iran-backed Hezbollah forces in Lebanon.
Oil-rich Gulf states such as Kuwait and the United Arab Emirates also have been targeted by Iran.
