Dow futures plunge nearly 500 points as U.S. attack on Iran sends oil prices soaring, while first American casualties reported

Fortune

by Jason Ma, Amanda Gerut

March 1, 2026

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U.S. stock futures dropped sharply Sunday evening as markets reacted to escalating tensions between the U.S. and Iran following a weekend of attacks, with oil prices surging amid fears of supply disruptions. The Dow Jones industrial average futures fell nearly 500 points, or 1.97%, while S&P 500 and Nasdaq futures also declined. Oil prices surged, with U.S. crude jumping 7% to $71.88 a barrel and Brent crude rising 8.1% to $78.77. The spike in oil prices reflects growing concerns over potential disruptions through the Strait of Hormuz, which carries about one-fifth of global oil exports. Iran’s actions have already caused significant disruptions. Shipping data shows hundreds of tankers idling near the strait, as tanker owners and oil companies suspended shipments as a precaution. Iran’s Islamic Revolutionary Guards Corps reported striking three oil tankers with missiles, and ships have been advised to avoid the area by multiple governments, including Greece and shipping giant Maersk. Analysts warn that a full closure of the Strait of Hormuz could send prices skyrocketing to $100 per barrel or higher, while even partial disruptions would create significant supply shortages. The situation has raised fears of prolonged instability in global oil markets. Experts compare it to the aftermath of Russia’s invasion of Ukraine in 2022, when oil prices reached $125 a barrel. While OPEC+ agreed to boost production by 206,000 barrels per day in April, analysts caution that this effort could be undermined if shipments through the Strait of Hormuz remain blocked. The potential for further escalation adds uncertainty for global markets, particularly in Asia, which relies heavily on oil imports via these routes. For businesses and investors, the implications are significant. Higher oil prices could lead to increased costs for transportation, manufacturing, and energy consumption worldwide. While gold and other safe-haven assets saw gains, broader market sentiment remains defensive as investors assess the potential economic impact of prolonged tensions in the Middle East. The situation underscores the delicate balance of global supply chains and

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Originally published on Fortune on 3/1/2026