&imwidth=800&imheight=600&format=webp&quality=medium "Iran-Israel war: Dow falls 2.2% as geopolitical fear grip US markets")
Wall Street stocks fell sharply early on Tuesday (March 3), extending a global market sell-off as investors grew concerned that a prolonged Middle East conflict could drive oil prices higher and fuel inflation. Around 20 minutes after the opening bell, the Dow Jones Industrial Average dropped 2.2 per cent to 47,837.16. The broad S&P 500 declined 1.9 percent to 6,749.42, while the tech-heavy Nasdaq Composite slid 2.0 percent to 22,300.67.
US equities had also opened lower on Monday but recovered through the session, as traders initially wagered that tensions would ease quickly without causing sustained increases in energy costs. By Tuesday (March 2), sentiment had shifted. "Overnight, what we realized was that this is not going away so quickly" and is "meeting the standards of having a broad geopolitical impact," said Steve Sosnick of Interactive Brokers.
Oil prices climbed again after Iran targeted additional energy infrastructure. Drones hit a fuel tank in Oman, while debris from an intercepted drone struck an oil storage area in the UAE. The Strait of Hormuz, a vital global shipping route for crude, remained largely empty.
"US investors can only trust their positive psychology to some extent before they realize that, 'Wait a minute, if this is a problem for everyone else in the world, maybe this should be a problem here too,'" Sosnick said. We're talking about "something that could have an important inflationary impact," he added.
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Disclaimer: WION takes utmost care to accurately and responsibly report ongoing conflicts in West Asia involving Israel, Iran, US, Gulf nations and non-state actors like Hezbollah, Hamas, Houthis, Islamic State, and others. Claims and counterclaims, disinformation and misinformation are being made online and offline. Given this context, WION cannot independently verify the authenticity of all statements, social media posts, photos and videos.
