U.S. stocks trend | Oil prices rise over 0.5% as Dow drops by 399 points

Unclear prospects for Middle East ceasefire negotiations, oil prices surge significantly, dragging U.S. stocks lower on Thursday with volatile declines. The Dow Jones Industrial Average temporarily fell by as much as 399 points, reaching a low of 46,030 points; both the S&P 500 and Nasdaq declined over 1%.

Brent crude rises above $100

As of 12:33 a.m. local time, the Dow was at 46,038, down 391 points or 0.84%; the S&P 500 was at 6,515, down 76 points or 1.16%; the Nasdaq was at 21,594, down 334 points or 1.53%.

NYMEX crude oil is currently trading at $94.95 per barrel, up 5.13%; London Brent crude oil increased by 5.12%, trading at $102.38 per barrel.

U.S. President Donald Trump stated that Iran allowing 10 oil tankers to pass through the Strait of Hormuz as a “gift” is a gesture of sincerity in negotiations with the U.S., indicating Tehran is serious about ending the war.

Iran continues to reject Trump’s proposed negotiations. According to news website Axios, the U.S. Department of Defense is studying “final strike” options, including deploying ground forces and large-scale bombing operations. Trump also warned Iran to take negotiations seriously soon, or face serious consequences.

Market analysts note that if Iran signals willingness to negotiate and increases the likelihood of reopening the Strait of Hormuz, stocks could quickly rebound to previous highs; however, since Iran still rejects all dialogue proposals, market risk sentiment remains elevated.

BlackRock CEO Rob Kapito warned that investors may underestimate the risks of war. He pointed out that even if the conflict ends in the short term, high energy prices could still weigh on economic growth and drive inflation.