Dow Plunges 650 Points as Iran Conflict Drives Oil Prices Higher

Stocks tumble amid fears of prolonged Strait of Hormuz blockade and lack of diplomatic resolution to Iran crisis

Published on Mar. 6, 2026

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The Dow Jones Industrial Average dropped over 650 points in early trading on Friday as the ongoing conflict with Iran continued to drive up oil prices. The S&P 500 and Nasdaq also fell sharply, with the tech-heavy Nasdaq declining 1%. The stock selloff extended losses from the previous day when the Dow closed down 785 points.

Why it matters

The steep drop in U.S. stocks reflects growing investor concerns about the economic fallout from the escalating tensions with Iran. A prolonged disruption of oil shipments through the Strait of Hormuz, a critical global trade route, could lead to a spike in energy prices that would ripple through the broader economy.

The details

Oil prices surged over 35% in the past week, with U.S. crude topping $88 per barrel, as traders feared Iran would block the Strait of Hormuz in retaliation for U.S. sanctions. In a social media post on Friday, President Trump appeared to rule out any compromise, saying there would be "no deal with Iran except UNCONDITIONAL SURRENDER!"

  • The Dow fell 657 points, or 1.3%, in early trading on Friday, March 6, 2026.
  • The S&P 500 dropped 1.2% and the Nasdaq declined 1% on March 6, 2026.
  • The stock selloff on Friday extended losses from the previous day, when the Dow closed down 785 points on March 5, 2026.

The players

Donald Trump

The President of the United States, who appeared to rule out any compromise with Iran in a social media post on Friday.

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What they’re saying

“no deal with Iran except UNCONDITIONAL SURRENDER!”

— Donald Trump (Social media)

What’s next

Investors will be closely watching for any diplomatic developments or escalations in the conflict between the U.S. and Iran, which could further impact oil prices and stock market performance.

The takeaway

The steep drop in U.S. stocks underscores the significant economic risks posed by the ongoing tensions with Iran, particularly the potential disruption of oil shipments through the Strait of Hormuz. This highlights the fragility of the global economy and the need for a diplomatic resolution to the crisis.