The Dow recovered some ground from a 1,000-point loss. President Trump tried to assuage fears as oil prices surged.
US stocks declined but closed off session lows on Tuesday after Israel and US jets launched new strikes on Iran, as the widening conflict stoked worries about a drawn-out regional war.
The Dow Jones Industrial Average (^DJI) fell about 0.8%, or roughly 400 points, after plunging as much as 1,200 points earlier in the session. The S&P 500 (^GSPC) and the Nasdaq Composite (^IXIC) both dropped roughly 1% as oil prices continued to rally on concerns about blocked supply.
Traders have been focused on Tehran’s response after Iran targeted oil infrastructure and other targets across a huge swathe of the region.
Crude prices (BZ=F, CL=F) pared gains in afternoon trading after President Trump said the US would provide insurance for tankers and the Navy would escort them through the Strait of Hormuz, a critical choke point for global energy flows.
Fears of a prolonged war have kept markets on edge, as Trump said the US will do whatever it takes to win the war. “Right from the beginning, we projected four to five weeks," Trump said. "But we have the capability to go far longer than that.”
Meanwhile, gold (GC=F) prices turned lower after a four-day rally, slipping by as much as 4% as the US dollar strengthened.
Daily Market Coverage Mar. 2, 2026 3PM-5PM (ET) | Yahoo Finance
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