U.S. stock markets declined on Thursday as oil prices surged due to rising tensions in the Middle East. This situation concerns investors, especially as two of the largest companies reported their quarterly results.
The Dow Jones Industrial Average dropped by 506.93 points, which is a decrease of 0.97%, closing at 51,711.65. The S&P 500 also fell by 1.21%, ending at 7,408.30, while the Nasdaq Composite saw a larger decrease of 2.15%, closing at 25,137.69. This decline was influenced by a 7% drop in Alphabet’s shares and a 14% fall in Tesla’s stock following disappointing earnings reports.
Oil prices rose sharply after Yemen’s Houthi militants claimed responsibility for attacks on Saudi Arabian tankers in the Red Sea. This news heightened fears of a broader conflict in the region. Additionally, U.S. President Donald Trump threatened military action against Iran if it targets shipping in the Strait of Hormuz.
Brent crude oil futures increased by 7% to $100.69, while U.S. West Texas Intermediate crude rose by 6% to $92.19 per barrel, both hitting their highest prices in months.
Treasury yields also increased, with the 10-year yield surpassing 4.7%, the highest level since January 2025. Currently, there is a strong expectation that the Federal Reserve will raise interest rates in September.
Going forward, market watchers will closely observe the ongoing conflict in the Middle East as it unfolds.
