Dow Plunges as Oil Prices Surge on Iran Tensions

The Dow Jones Industrial Average fell by 0.7% on August 31, 2026, as oil prices surged following the first U.S.-Iran military exchange in over a month.

The conflict has raised concerns about inflation and supply disruptions in a market already bracing for higher interest rates.

Brent crude, the international oil benchmark, rose 2.7% to settle at $90.49 per barrel, its highest level in a week.

West Texas Intermediate crude jumped 2.8% to $85.76, logging its biggest single-day gain since early August.

The uptick reversed a decline of more than 5% from the previous week, when talks between Iran and Oman had raised hopes of reopening the Strait of Hormuz.