Dow sinks 100 points, oil nears $100 as Strait of Hormuz traffic remains limited

• Brent crude jumped 3.9% to $98.42 and WTI rose 4.6% to $91.74, while the Dow fell 128 points (0.3%) as Iran continued blocking ships through the Strait of Hormuz despite ceasefire terms requiring its reopening
• US gasoline prices climbed to $4.17 per gallon and energy experts warn it could take months for global supplies to normalize even if the strait fully reopens
• Iran reportedly seeks tolls as high as $2 million per ship for passage and claims the US violated the ceasefire agreement after Israel launched strikes on Hezbollah in Lebanon, with VP JD Vance scheduled to lead talks Saturday

Market Summary: Stocks Fall as Oil Surges on Iran Tensions

Market Performance:

US equities declined Thursday morning, with the Dow Jones Industrial Average dropping 128 points (-0.3%), while the S&P 500 and Nasdaq each fell 0.1%. This reversed gains from the previous session.

Oil Price Surge:

Crude oil prices jumped sharply as geopolitical tensions escalated. Brent crude rose 3.9% to $98.42 per barrel, while West Texas Intermediate climbed 4.6% to $91.74. National average gasoline prices reached $4.17 per gallon, continuing their climb above $4.

Key Developments:

Iran accused the US of violating a recently announced two-week ceasefire agreement, citing Israeli strikes on Hezbollah in Lebanon. Traffic through the Strait of Hormuz—a critical chokepoint handling 20% of global oil supply—remains severely restricted. Iran's parliamentary speaker Mohammad Bagher Ghalibaf declared bilateral negotiations "unreasonable" given the alleged violations.

Additional Complications:

Reports indicate Iran is seeking tolls as high as $2 million per ship for passage through the strait, potentially disrupting crude oil flows from the Persian Gulf. President Trump warned of severe consequences if Iran violates the deal and confirmed US military forces will remain in the region until full compliance.

Market Outlook:

Energy experts warn that even with full reopening of the strait, global oil supplies could take months to normalize, with elevated prices expected through summer. Vice President JD Vance is scheduled to lead US-Iran negotiations Saturday in Islamabad with Pakistani mediators.

The energy sector remains the primary market focus as traders hedge positions amid ongoing geopolitical uncertainty.