US stock markets opened lower after Donald Trump escalated tensions with Iran, warning that “a whole civilisation will die tonight” ahead of his deadline for Tehran to reopen the Strait of Hormuz. The decline also follows US strikes on Kharg Island, a critical export hub that handles nearly 90% of Iran’s crude shipments.
The S&P 500 and Nasdaq Composite fell 0.4% and 0.5%, respectively, at the open, while the Dow Jones Industrial Average dropped over 240 points, or 0.5%. At its intraday low, the Dow Jones slumped as much as 425 points.
Oil prices surged sharply amid supply concerns. US crude (WTI) jumped about 3% to above $115 per barrel, while Brent crude crossed $110. In contrast, gold and silver prices slipped alongside broader risk assets, even as the US dollar strengthened.
The escalation comes just hours before Trump’s 8 p.m. ET (5:30 a.m. IST) deadline for Iran to reopen the Strait of Hormuz.
Adding to market jitters, reports of possible Iranian missile strikes on Saudi Arabia have heightened fears of a wider regional conflict, potentially disrupting ongoing diplomatic efforts.
Also read: US strikes on Iran’s Kharg Island push oil prices higher, weigh on global markets
First Published: Apr 7, 2026 7:14 PM IST
