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Trump's Iran Threat Sends Markets into Free Fall and Crude Oil Prices Soaring

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Tensions between the US and Iran escalated on Thursday after President Donald Trump issued a new threat to Tehran following attacks by Houthi rebels on Saudi Arabian tankers in the Red Sea.

The Dow Jones Industrial Average fell over 500 points, with the S&P 500 index declining about 1% and the Nasdaq Composite falling over 2%. The tech-heavy Nasdaq was also dragged down by second-quarter results from Tesla Inc. (TSLA) and Alphabet Inc. (GOOG, GOOGL).

Crude oil prices surged past $100 a barrel for the first time since May 20, 2026, with U.S. West Texas Intermediate (WTI) crude futures up 6.08% at around $92.01 a barrel.

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