Dow Plunges Nearly 800 Points as Iran War Drags On

Stocks tumble amid ongoing global oil crisis and economic instability from the month-long conflict.

Mar. 28, 2026 at 4:06am

Got story updates? Submit your updates here. ›

The Dow Jones Industrial Average plummeted 790 points, or 1.7%, on Friday as the ongoing U.S.-Israeli war with Iran showed no signs of resolution, exacerbating one of the worst global oil shocks in decades. The S&P 500 fell 1.6% and the Nasdaq dropped 2.1%, capping a woeful week for major stock indexes.

Why it matters

The Iran conflict has disrupted global energy markets, with the blockade of the critical Strait of Hormuz driving oil prices up by 61% since the war began a month ago. Experts warn the crisis poses a 'major, major threat' to the world economy, with no country immune to the fallout if the situation continues to escalate.

The details

Late Thursday, President Donald Trump postponed planned U.S. attacks on Iranian power plants in an effort to avoid further escalation. However, Wall Street appeared unconvinced, as Iran continues to blockade the Strait of Hormuz, a key global oil chokepoint. Global oil prices stood at about $113 a barrel on Friday. The crisis has also driven up U.S. Treasury yields, suggesting growing concerns about economic instability and inflation.

  • The U.S.-Israeli war with Iran began one month ago.
  • On Thursday, President Trump postponed planned attacks on Iranian infrastructure.
  • On Friday, March 27, 2026, the Dow Jones Industrial Average closed down nearly 800 points.

The players

Donald Trump

The President of the United States who postponed planned attacks on Iranian targets in an effort to avoid further escalation of the conflict.

Fatih Birol

The executive director of the International Energy Agency (IEA) who warned that the current oil crisis posed a 'major, major threat' to the global economy.

Got photos? Submit your photos here. ›

What they’re saying

“The current oil crisis had surpassed the combined effect of worldwide energy shocks in the 1970s.”

— Fatih Birol, Executive Director, International Energy Agency

“I was pausing the period of Energy Plant destruction until April 6.”

— Donald Trump

What’s next

Investors will be closely watching for any developments in the Iran conflict, particularly any potential breakthroughs in negotiations or escalations that could further disrupt global energy markets and economic stability.

The takeaway

The prolonged Iran war has become a major threat to the global economy, with the disruption of oil supplies and rising energy prices causing significant turmoil in financial markets. Resolving the conflict and restoring stability to energy markets will be crucial to preventing further economic fallout.