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Stocksfell sharply in New York on Tuesday. Concerns about a conflict between the U.S. and Iran worriedinvestors. President Donald Trump made comments that helped ease some fears.
The Dow Jones Industrial Average lost 403.51 points. It closed at 48,501.27. The S&P 500 index dropped 0.94% to finish at 6,816.63. The Nasdaq Composite fell 1.02%, closing at 22,516.69. At one point, the Dow was down by more than 1,200 points.
Trump announced that the U.S. Navy would protect ships in the Strait of Hormuz if needed. He stated that the U.S. would ensure energy supplies to the world. The price of Brent crude oil rose by 4.71%. This follows a 6% increase the day before.
The conflict has five days left. The U.S. Embassy in Saudi Arabia was attacked, and drone strikes increased. Markets could stay unstable if the situation continues. Offices in Bahrain, Iraq, and Jordan began evacuations due to safety concerns. All S&P 500 sectors dropped, with significant losses in materials and industrials.