US Stocks Fall as Iran Conflict Fears Mount; Oil Surges 4.7%

NEW YORK — US stocks fell sharply as concerns grew that US-Israeli military operations against Iran could last longer than expected. International oil prices surged more than 4% following Iran's blockade of the Strait of Hormuz.

On the New York Stock Exchange on Monday, the Dow Jones Industrial Average closed at 48,501.27, down 403.51 points (0.83%) from the previous session. The S&P 500 fell 64.98 points (0.94%) to 6,816.64, while the Nasdaq Composite dropped 232.17 points (1.02%) to 22,516.69.

Among major technology stocks, Nvidia fell 1.33%, Apple declined 0.37%, Alphabet dropped 0.96%, Tesla slid 2.70%, and Broadcom lost 1.56%. Microsoft rose 1.35%, Amazon gained 0.16%, Meta added 0.23%, and Walmart climbed 0.64% despite the broader market decline.

Markets plunged more than 2.5% in early trading on concerns that the full-scale conflict between the US, Israel, and Iran that began on April 28 could extend beyond initial expectations. President Trump delivered his first public remarks since the war began at a Medal of Honor ceremony at the White House the previous day, stating, "I expected it would take 4-5 weeks, but we have the ability to sustain it longer." In an interview with the New York Post, he added, "We can deploy ground troops if necessary."

Ibrahim Jabbari, adviser to the commander of Iran's Islamic Revolutionary Guard Corps (IRGC), warned the previous day that all vessels passing through the Strait of Hormuz would be destroyed. The strait handles 20-30% of global oil shipments. Iraqi officials noted that if tankers cannot transit the strait, oil production could be cut by more than 3 million barrels per day within days.

Markets stabilized somewhat after Trump's subsequent remarks. Speaking at a bilateral meeting with German Chancellor Friedrich Merz at the White House on Monday, Trump said, "Iran's aerial detection capabilities, radar, and everything else have been neutralized. Their missile stockpiles are rapidly depleting." He added, "We were negotiating with these lunatics, and I thought they would strike first. They were about to attack, and if we hadn't acted, they would have struck first."

Regarding rising oil prices, Trump said, "Oil prices may be a little higher for a while, but as soon as this is over, prices will come down. I think they could even go lower than before." On his social media platform Truth Social, Trump announced, "If necessary, the US Navy will begin escorting tankers through the Strait of Hormuz as soon as possible." He added that he had directed the US International Development Finance Corporation (DFC) "to provide political risk insurance and guarantees at very reasonable rates for all shipping through the Gulf region, especially energy transport, effective immediately."

On the New York Mercantile Exchange, West Texas Intermediate (WTI) crude closed at $74.56 per barrel, up $3.33 (4.67%) from the previous session. Brent crude futures on the ICE exchange rose $3.66 (4.71%) to $81.40 per barrel. Oil prices had surged 12-13% intraday before trimming gains following Trump's announcement of US Navy escorts.