Major US stock indexes fell more than 1.5% Thursday as oil prices surged back above $100 per barrel. Iran's new supreme leader threatened to keep the crucial Strait of Hormuz closed and warned that US bases in the region will be attacked unless they shut down.
Wall Street suffered a major selloff Thursday as oil prices spiked above $100 per barrel due to Iran's blockade of the Strait of Hormuz. The Dow Jones dropped 730 points while crude oil prices surged 49% over the past month, raising concerns about prolonged economic fallout from the U.S.-Israeli conflict with Iran.
Global oil prices surged past $100 per barrel Thursday after Iran's new supreme leader threatened to keep the vital Strait of Hormuz closed. Major U.S. stock indexes fell more than 1.5% as energy concerns roiled markets worldwide.
The Supreme Court ruled 6-3 that President Trump's tariffs under the International Emergency Economic Powers Act are illegal, while military operations against Iran and AI concerns continued to weigh on markets. The S&P 500 declined 0.9% in February while bonds gained 1.6%.
The first quarter of 2026 has witnessed a dramatic shift in U.S. equity markets, with investors rotating away from mega-cap technology stocks toward value and cyclical sectors. The Russell 2000 Value Index outperformed large-cap growth by 14 percentage points through February, while Energy and Materials sectors posted their strongest start in over a decade.
