The Dow Jones Industrial Average plummeted more than 700 points Thursday, marking its lowest close of 2026, as escalating Middle East tensions sent shockwaves through global markets. Oil prices surged above $100 per barrel amid a deepening crisis in the Strait of Hormuz, while S&P 500 futures remained flat ahead of critical inflation data.
The crisis intensified after a US military refueling aircraft went down in western Iraq, prompting a rescue operation. The Strait of Hormuz, through which roughly 20% of global oil flows, has become a focal point of the expanding conflict, raising fears of supply disruptions.