Dow Plunges Over 400 Points Amid Iran Tensions
The Dow Jones Industrial Average plummeted over 400 points on Tuesday as tensions between the US and Iran escalated. This marked a significant recovery from earlier in the day when the index dropped by more than 1,200 points.
Investors reacted with concern to the prospect of a prolonged blockade of the Strait of Hormuz, which facilitates the transport of about one-fifth of global oil supply. As a result, oil prices surged for the second consecutive day.
The S&P 500 dropped 0.9%, while the tech-heavy Nasdaq declined 1%. The national average price of gasoline in the US soared by about 11 cents overnight to $3.11.
In an attempt to reassure investors, President Donald Trump announced on social media that the federal government would provide 'political risk insurance and guarantees for the Financial Security of ALL Maritime Trade.' He also stated that if necessary, the United States Navy would begin escorting tankers through the Strait of Hormuz as soon as possible.