U.S. Stocks Slide at Open as Iran Conflict Jolts Oil, Spurs Flight to Safety

U.S. stocks fell shortly after Monday’s opening bell as escalating hostilities between Washington and Tehran rattled investors and sent energy prices sharply higher.

The Dow Jones Industrial Average dropped 384.30 points, or 0.78%, to 48,593.6. The S&P 500 fell 47.14 points, or 0.69%, to 6,831.74, while the Nasdaq Composite declined 148.63 points, or 0.66%, to 22,519.6.

Crude oil prices surged as disruptions in tanker traffic through the Strait of Hormuz heightened fears of supply constraints. April West Texas Intermediate futures rose 6.79% to $71.57 per barrel shortly after the open. Earlier, U.S. oil traded 7.4% higher at $71.97, while Brent crude climbed 7.7% to $78.46, according to the Associated Press.

The Strait of Hormuz, through which roughly 20% of global oil supply passes, has become a flashpoint. The Associated Press reported that Data firm Kpler said tanker traffic dropped sharply amid satellite navigation disruptions. The UK Maritime Trade Operations Centre reported attacks on vessels near the chokepoint and warned of elevated electronic interference. Oman reported a bomb-carrying drone boat struck a Marshall Islands-flagged tanker, killing one mariner, while Saudi authorities reported intercepting Iranian drones targeting the Ras Tanura refinery.

In Washington, Secretary of War Pete Hegseth said during a morning briefing that the United States is “not ruling out any options in war in Iran,” adding, “we fight to win.” He also confirmed that “Iranian weapons hit tactical operations center, causing the U.S. casualties.”

Hegseth also said that “there are no American boots on the ground in Iran at this time,” describing recent U.S. airstrikes as the “most lethal” aerial operation under the Trump administration. The U.S. “did not start this war,” he said, but is committed to “securing national interests through precision and deterrence.”

The geopolitical shock has fueled demand for traditional safe havens. Gold jumped 3.31% in 24 hours to about $5,422 per ounce, with futures rising 4% above $5,400, according to AInvest. Bitcoin, by contrast, slid toward $60,000 and lost nearly 5% within minutes of the strikes, challenging its “digital gold” narrative despite a recent $787 million inflow into spot Bitcoin ETFs.

For now, markets appear to be pricing in a risk premium rather than a prolonged disruption. Whether oil’s surge and gold’s spike prove durable may hinge on the trajectory of the conflict—and whether the Strait of Hormuz remains open.