Dow Jones loses 740 points as oil prices remain high

US stocks closed Thursday in the red as oil prices continued to surge after Iran reiterated the need to keep the Strait of Hormuz closed, while Washington said its naval forces are not currently ready to escort tankers and ships.

The Dow Jones Industrial Average shed 1.56%, or 739 points, to 46,677.

The broader S&P 500 dropped 1.52%, or 103 points, to 6,672, while the Nasdaq Composite dropped 1.78%, or 404 points, to 22,311.

Banking and technology stocks led broad selloffs on Wall Street, while energy companies, including Chevron and Exxon Mobil, were among the few stocks posting gains.

In Europe, the Stoxx Europe 600 index fell 0.61% to 598 points, amid weakness in banking stocks.

The UK’s FTSE 100 dropped 0.47% to 10,305. Germany’s DAX slipped 0.21% to 23,589, and France’s CAC 40 fell to 7,984 points.

In Japan, the Nikkei 225 closed 1% lower at 54,452, while the broader Topix declined 1.32% to 3,649.

On oil, Brent crude futures for May delivery jumped 9.22%, or $8.48, to $100.46 per barrel, closing above $100 for the first time since August 2022.

Meanwhile, US WTI crude futures for April delivery rose 9.72%, or $8.48, to $95.73 per barrel.

Elsewhere, gold futures for April delivery fell 1%, or $53.30, to $5,125.80 per ounce.

What’s Driving Markets?

Attacks on shipping in the Middle East continued as the regional conflict entered its 13th day, while Iran’s Supreme Leader said the Strait of Hormuz must remain closed.

At the same time, the US energy secretary said the Navy is “not ready” to escort oil tankers, according to Reuters.