Dow Jones plunges 1,212 points: Oil jumps on Iran threat; gold and silver slide

The Dow Jones Industrial Average dropped 1,212 points, or 2.30%, its first four-figure loss since April 2025. The S&P 500 lost 142 points, and the Nasdaq fell 501 points. The sudden selloff was not due to company earnings or economic reports. Instead, it came after Iran threatened to close the Strait of Hormuz, a key route for global oil shipments.

Brent crude rose above $84 a barrel, and WTI crude climbed past $77. Oil prices jumped about 8% in one day, adding to inflation concerns. Higher oil costs can raise gasoline and transportation prices, affecting the overall economy. Rising Treasury yields also contributed to the selloff, as investors expected the Federal Reserve might delay cutting interest rates.

Tech stocks were hit the hardest. NVIDIA fell nearly 2%, Intel dropped 6.4%, and Nokia lost 5.1%. High-value growth stocks were sold first as investors reduced risk. Meanwhile, US energy companies saw big gains. Battalion Oil rose almost 120%, Texxon Holding gained 28%, and Venture Global increased over 10%.

Gold fell 5.37% and silver more than 10%. Analysts say this is due to investors selling these assets to raise cash.

Iran’s Revolutionary Guard warned that ships crossing the Strait of Hormuz could be attacked. Drones hit the US embassy in Riyadh. The US ordered evacuations from Bahrain, Iraq, and Jordan. Tehran-backed Hezbollah launched missiles toward Tel Aviv. President Donald Trump said that the conflict could last more than four weeks.