Dow tumbles 600 points as Brent crude tops $100, Alphabet and Tesla drop

U.S. equities fell on Thursday, as oil prices surged amid escalating conflict in the Middle East, while investors weighed quarterly results from two of the largest companies in the world.

The Dow Jones Industrial Average lost 626 points, or 1.2%. The S&P 500 dropped 1.5%, while the Nasdaq Composite lost 2.8%.

Oil prices put more pressure on stocks, as they soared after Yemen’s Tehran-backed Houthi militant group claimed attacks on two Saudi Arabian tankers in the Red Sea, fueling concerns about an expansion of the conflict in the Middle East. Prices also moved higher after U.S. President Donald Trump threatened to bomb Iranian infrastructure.

“From this point forward, any time the Islamic Republic of Iran shoots at a ship in the Strait of Hormuz, whether it be by Missile, Rocket, Drone, or any other device or weapon, the United States will bomb and destroy ONE BRIDGE OR POWER PLANT, including those located next to, or in, the Capital City of Tehran,” the president wrote in a post on Truth Social.

Brent crude futures gained 7% to trade above $101, while U.S. West Texas Intermediate crude futures advanced 6% to above $92 per barrel. Both Brent and WTI were trading at their highest levels since before the U.S. and Iran reached an agreement to bring their war to an end last month.