Equity markets resumed their decline on Wednesday as the Iran conflict showed no sign of resolution, sending oil above $100 a barrel for the first time this year and pushing the Dow Jones Industrial Average to its lowest close of 2026.
Iran said it would maintain its closure of the Strait of Hormuz and stepped up attacks on commercial shipping in the Gulf, removing the short-lived optimism that had steadied markets earlier in the week. President Trump had on Monday signalled the war could end "very soon," triggering a sharp reversal in crude and a partial stock recovery. That relief proved temporary.
The Dow fell roughly 600 points on the day, according to reports from CNBC and Yahoo Finance, while the S&P 500 and Nasdaq also declined. The Wall Street Journal reported the Dow's close was the weakest of the year. Asian markets had already pointed lower overnight, and European equities followed.
Oil's trajectory has been the central variable driving sentiment. Crude briefly spiked to nearly $120 a barrel during the initial shock before Trump's comments pulled it below $90. It has since climbed back through $100, and a coordinated global release of strategic reserves has so far failed to arrest the advance, according to the New York Times.
JPMorgan warned clients the S&P 500 could fall a further 10% into correction territory if the conflict drags on, according to Business Insider. Private credit markets have also come under scrutiny, with reports of broader stress in that segment adding to investor unease.
Among individual stocks, Dollar General fell sharply, though details of the move were not fully reported in available sources. Commodity-linked equities were among the few gainers, benefiting from elevated energy prices.
The duration of the Hormuz closure remains the key unknown. The strait handles roughly a fifth of the world's seaborne oil, and a prolonged blockage would tighten global supply materially, sustaining upward pressure on energy costs and inflation expectations.
