Global markets experienced a significant downturn Tuesday as escalating U.S.-Iran hostilities rattled equities, cryptocurrencies, and commodities. Oil was the sole exception, surging on supply concerns.
The S&P 500 fell 2.2%, the Nasdaq Composite retreated 2.1%, and the Dow Jones Industrial Average dropped over 2.3%. Energy stocks, however, saw gains as crude prices climbed.
Digital assets reversed recent gains. Bitcoin declined approximately 3%, falling from nearly $70,000 to around $67,000. Ethereum dropped 4% to about $1,940, and Solana lost 4% to trade near $83.50.
Precious metals suffered steep losses. Gold tumbled more than 5% toward $5,000 per ounce, while silver cratered nearly 10% to around $80.
Crude oil defied the risk-off sentiment. Brent crude climbed 7.3% to surpass $84 per barrel, and West Texas Intermediate jumped 8.4% to trade above $77.
The surge in energy prices followed reports of Iran closing the Strait of Hormuz, a critical oil shipping chokepoint. The conflict has now entered its fourth consecutive day of escalation, with drone strikes reported near the U.S. embassy in Riyadh and expanded regional operations by Iranian forces.
Amidst the turmoil, President Trump indicated the conflict could extend beyond four weeks, increasing global financial market uncertainty.