Global financial markets plunged following reports of direct military exchanges between the U.S. and Iran, with the Dow Jones Industrial Average falling to session lows. Energy shares, particularly major oil producers, rose sharply amid growing concerns over supply disruptions.
- Dow Jones Industrial Average dropped 742 points (2.1%) to trade below 34,000.
- Crude oil futures (CL=F) rose 8.2% to $91.30 per barrel.
- ExxonMobil (XOM) gained 6.8%, Chevron (CVX) rose 5.9%.
- CBOE VIX index increased 44% to 28.7.
- Market turmoil prompted shifts toward safe-haven assets.
- Escalation risks centered on potential disruption to Strait of Hormuz oil flows.
Markets plunged in early trading on March 2, 2026, after unverified reports confirmed military strikes exchanged between U.S. forces and Iranian-backed militias in the Middle East. The Dow Jones Industrial Average dropped 742 points, or 2.1%, to briefly trade below 34,000, marking its worst intraday decline since late 2023. The S&P 500 fell 1.9%, while the Nasdaq Composite shed 1.6% amid heightened risk aversion. The defense and energy sectors led market movements, reflecting the geopolitical shock. Energy stocks surged, with ExxonMobil (XOM) jumping 6.8% and Chevron (CVX) rising 5.9%. Crude oil futures, tracked by CL=F, spiked 8.2% to $91.30 per barrel, the highest level since November 2023, as traders priced in potential supply chain risks across the Persian Gulf. Volatility also surged, with the CBOE VIX index — a key measure of market fear — climbing 44% to 28.7, its highest reading in over a year. This reflects heightened expectations of market turbulence and increased hedging activity across equity and fixed-income portfolios. Investors are now assessing the potential for broader regional escalation and its impact on global trade routes, particularly the Strait of Hormuz, a critical chokepoint for oil shipments. Financial institutions and asset managers are adjusting portfolio allocations, reducing exposure to Middle East-sensitive assets and increasing positions in safe-haven instruments like U.S. Treasuries and gold.