Wall Street stocks fell sharply on Thursday as the escalating conflict in the Middle East pushed crude oil prices above $105 a barrel, while fresh US producer price data for August fuelled expectations of a possible interest rate hike this month.
At the open, the Dow Jones Industrial Average fell 88.8 points, or 0.17%, to 52291.85. The S&P 500 fell 41.6 points, or 0.55%, to 7594.74, while the Nasdaq Composite dropped 232.3 points, or 0.88%, to 26021.052.
Brent crude, the global oil benchmark, climbed above $105 a barrel, while US crude futures moved above $100 for the first time since May. Investors remained concerned about the prolonged US-Iran conflict, with no immediate signs of a resolution.
The latest attacks involving the US and Iran have disrupted the flow of oil through the strategically important Strait of Hormuz, raising concerns over global energy supplies.
US President Donald Trump said on Wednesday that oil prices were unlikely to decline until after the US midterm elections, adding to uncertainty in financial markets.