The Dow Jones Industrial Average fell sharply on Thursday as investors worried that the Iran conflict may escalate and stretch on longer than thought.
The Dow fell 785 points, or 1.6 percent. The broader S&P 500 declined by 0.6 percent, and the Nasdaq composite inched down 0.3 percent.
Of the 11 sectors of the S&P, information technology, consumer discretionary, and energy were the only gainers. Consumer staples, industrials, and materials were the biggest decliners.
Brent crude, the global energy benchmark, rose to 83.81, nearly three percent above the previous day’s price. West Texas Intermediate, the U.S. benchmark, climbed nearly six percent. Natural gas in the U.S. climbed 2.4 percent.
Iran’s state media claimed the country’s military forces struck an oil tanker with a missile, although that has not been confirmed. Iran’s Revolutionary Guard ordered the closure of the Strait of Hormuz earlier this week. Private insurance companies, led by Lloyd’s of London, have backed away from insuring ships passing through the strait, prompting President Donald Trump to say the U.S. would provide insurance and, if necessary, military escorts for tankers.
This week, stocks have traded down when oil traded up, highlighting the role the conflict is playing in financial markets.
U.S. Treasury yields rose for a fourth consecutive day. Traders say they fear higher oil prices could stand in the way of the Fed cutting interest rates later this year.
Stocks were down across Europe.
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