Dow falls 300 points, oil jumps as Trump's Iran bombing deadline quickly approaches

• Dow fell 320 points (0.7%), S&P 500 dropped 0.8%, and Nasdaq declined 1.2%, while West Texas Intermediate crude jumped 2.9% to $115.71 per barrel and national gas prices rose to $4.14 per gallon
• The US reportedly struck Kharg Island overnight, which controls 90% of Iranian crude oil exports, and Trump threatened further bombardment of power plants and bridges if Iran doesn't reopen the strait by his 8 p.m. deadline
• Economists warn that energy supply shocks from ongoing Middle East strikes could keep oil prices elevated long-term due to infrastructure damage, potentially reheating inflation and keeping interest rates higher

Market Summary: U.S. Stocks Decline as Iran Deadline Looms, Oil Prices Surge

U.S. equities declined Tuesday morning as President Trump's deadline for Iran to reopen the Strait of Hormuz approached, with fears mounting that no deal would be reached. The Dow Jones Industrial Average fell 320 points (0.7%), the S&P 500 dropped 0.8%, and the Nasdaq declined 1.2% by approximately 10:05 a.m. ET.

Energy Markets:

Oil prices surged on geopolitical tensions. Brent crude rose 0.4% to $110.19 per barrel, while West Texas Intermediate jumped 2.9% to $115.71. National average gasoline prices climbed to $4.14 per gallon, according to AAA.

Geopolitical Developments:

Trump's 8 p.m. deadline threatens intense bombardment of Iranian bridges and power plants if the Strait of Hormuz—a critical route for 20% of global oil supplies—remains closed. The president indicated on Truth Social that a deal appeared unlikely. Reports emerged of overnight U.S. strikes on Kharg Island, Iran's critical energy hub controlling 90% of Iranian crude oil exports, though Trump declined to comment directly.

Market Implications:

The Strait of Hormuz closure and escalating Middle East tensions following U.S.-Israel strikes on Iran since February 28 have damaged energy facilities across Iran, Qatar, and Saudi Arabia. Analysts warn that oil prices could remain elevated even post-conflict due to repair costs and timeframes. Economists caution that energy supply shocks may ripple through consumer prices, potentially reigniting inflation and keeping interest rates elevated longer.

Critics have characterized potential infrastructure strikes as war crimes, though Trump dismissed these concerns during a Monday press conference.