Dow Jones Falls as U.S.-Iran Conflict Escalates, Oil Prices Surge

Wall Street Wobbles as U.S.-Iran Conflict Intensifies, Nvidia Leads Tech Decline

This article first appeared on GuruFocus. The Dow Jones Industrial Average traded lower on Friday as escalating tensions between the United States and Iran weighed on investor sentiment, while rising crude oil prices added to broader market uncertainty. The latest decline followed reports that U.S. forces struck infrastructure targets in southern Iran for a sixth consecutive day.

Iran has previously warned it could respond by supporting disruptions to shipping through the Bab el-Mandeb Strait, a key maritime route that carries about 9% of global seaborne oil trade. Brent crude futures climbed more than 3% as traders assessed the potential impact of the conflict on global energy supplies. Oil prices have risen about 17% since hostilities resumed earlier this month, reflecting concerns over possible supply disruptions in the region.

Technology shares also remained under pressure, extending the recent weakness across AI-related stocks. Nvidia (NASDAQ:NVDA), Alphabet (NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT) and Amazon (NASDAQ:AMZN) traded lower during the session, while investors rotated toward more defensive sectors such as healthcare and consumer staples amid heightened geopolitical uncertainty.