Stock market today: Dow falls more than 800 points, S&P 500 and Nasdaq sink as Iran war jitters return with another oil surge

March 5, 2026 - 18:22

A sharp sell-off gripped Wall Street today as investor anxiety over the escalating Middle East conflict triggered a broad market retreat. The Dow Jones Industrial Average plummeted over 800 points, leading deep declines across major indices, with the S&P 500 and Nasdaq Composite also sinking significantly.

The primary catalyst for the downturn was a surge in global oil prices, fueled by renewed fears that the regional conflict could widen and disrupt energy supplies. This resurgence of geopolitical risk, now entering its sixth day, has effectively erased the tentative stability markets had found earlier in the week, reminding investors of the volatile landscape.

The sharp rise in crude prices stoked concerns about persistent inflation and the potential for interest rates to remain higher for longer. This environment is particularly punishing for stocks, as it pressures consumer spending and corporate profits while increasing the appeal of safer assets. The flight to safety was evident across trading floors, with government bonds seeing increased demand.

Today's dramatic drop underscores how geopolitical shocks can swiftly override other market fundamentals. With the situation remaining fluid, analysts warn of continued volatility as the world watches for any further escalation that could impact global energy markets and economic stability.