At the start of trading, the Dow Jones Industrial Average dropped 608 points, or 1.3%. The S&P 500 also fell by 1.3%, while the Nasdaq Composite declined by 1.7%, lagging behind as technology stocks led the downturn.
The downturn followed Trump’s comments indicating that US military actions against Iran might persist for a few more weeks before any possible withdrawal within a “two to three week” timeframe.
While he stated that the US was “getting very close” to concluding the conflict, the President also cautioned about additional strikes on Iran in the upcoming weeks, intensifying investor anxiety.
Markets have been vigilantly observing developments surrounding the Strait of Hormuz, a vital passage for global oil shipments, since any disruptions in this region could directly affect energy supply and prices.
This uncertainty triggered a notable spike in crude oil prices, with West Texas Intermediate futures surging roughly 12% to over $112 per barrel, while Brent crude increased about 7% to surpass $109 per barrel.
The shift in oil prices also indicated a broader risk-averse sentiment across markets. US government bonds faced pressure, resulting in higher yields, while gold softened as investors adjusted their positions amid fluctuating global indicators.
The drop in equities follows a stronger session on Wednesday, when optimism over a potential diplomatic breakthrough propelled markets. Those gains were reversed as investors reevaluated the chances of a swift resolution to the conflict.
Attention now turns to significant economic data releases, including weekly jobless claims on Thursday and the March jobs report on Friday. With US markets closed on Good Friday, Thursday serves as the last trading day of the holiday-shortened week.
First Published: Apr 2, 2026 7:40 PM IST
