Traders work on the floor of the New York Stock Exchange during morning trading on May 1, 2026 in New York City.
Michael M. Santiago | Getty Images
U.S. stocks fell on Thursday as oil prices soared on the back of escalating conflict in the Middle East as investors focused on quarterly results from the world’s two largest companies.
of Dow Jones Industrial Average You lost 527 points, or 1%. of S&P500 Although it decreased by 1%, Nasdaq Composite It decreased by 1.8%.
Oil prices soared after Yemen’s Iran-backed Houthis claimed to have attacked two Saudi tankers in the Red Sea, raising concerns about an escalating conflict in the Middle East, putting further pressure on stock prices. Prices also rose after US President Donald Trump threatened to bomb Iran’s infrastructure.
“From now on, every time the Islamic Republic of Iran shells a ship in the Strait of Hormuz, whether by missiles, rockets, drones, or other devices or weapons, the United States will bomb and destroy one bridge or power plant, including those next to and within the capital Tehran,” the president said in a post on Truth Social.
Brent crude oil futures for July delivery rose 6% to more than $100 a barrel, while U.S. West Texas Intermediate crude oil futures rose 5% to more than $91 a barrel. Both Brent and WTI were trading at their highest levels since before the US and Iran agreed to end the war last month.
Brent Crude Oil Futures for the past 6 months
“Inflation continues to be the market’s top priority this morning, with Brent oil prices rising amid continued tensions in the Middle East,” Deutsche Bank’s Jim Reid said in a note Thursday morning.
Government bond yields rose along with oil prices. 10 years Yields reached their highest level since January 2025.
“Indeed, the attacks between the US and Iran show no signs of slowing, with the Houthis announcing yesterday that they had targeted two oil tankers in the Red Sea, raising concerns that the conflict is escalating. As a result, oil prices have risen to a seven-week high and speculation of further interest rate hikes is growing.”
Stock prices were also weighed down by a 6% drop. alphabet Shares soared after Google’s parent company cited strong demand for artificial intelligence and raised its 2026 capital spending forecast to as much as $205 billion. The increase comes as investors have become more cautious about spending on hyperscalers’ AI efforts in recent months.
tesla Shares also fell more than 12% after the electric car maker missed out on significant profits in the second quarter. The company’s operating expenses also increased faster than revenues during the same period.
