Dow drops 600 points as oil jumps after Iran tanker strike; investors watch Strait of Hormuz

Dow falls more than 600 points as crude prices jump after tanker strike, while Berkshire Hathaway shares rise following buyback disclosure.

• Dow falls 601 points as Caterpillar and Goldman Sachs drop
• Oil prices surge after Iran missile strike on tanker
• Berkshire Hathaway shares up after buyback and CEO stock purchase

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The Dow Jones Industrial Average fell 601 points, or 1.2 percent, weighed down by losses in companies including Caterpillar and Goldman Sachs. The S&P 500 declined 0.5 percent, while the Nasdaq Composite slipped 0.2 percent.

Markets retreated a day after equities posted gains led by technology and semiconductor stocks. In Wednesday’s session, the Dow snapped a three-day losing streak, while both the S&P 500 and Nasdaq Composite ended higher.

Energy markets moved higher after Iran said it had struck an oil tanker with a missile.

U.S. West Texas Intermediate (WTI) crude futures rose about 5 percent to trade above $78 per barrel, marking their highest level since June 2025. Brent crude, the international benchmark, climbed more than 3 percent to above $84 per barrel.

The gains followed a relatively stable trading session for oil the previous day.

The rise in crude prices comes as investors continue to watch developments in the Persian Gulf, particularly around the Strait of Hormuz, a key maritime passage that handles roughly 20 percent of global oil supply.

U.S. President Donald Trump said Tuesday that Washington is preparing to provide risk insurance and security escorts for ships operating in the Persian Gulf to ensure tanker traffic can continue through the strait.

The White House, however, did not provide a timeline for when the route would be considered safe for oil tankers.

At a briefing with reporters, U.S. Defense Secretary Pete Hegseth said the United States is “winning decisively” in its conflict with Iran and confirmed that additional U.S. forces are being deployed to the region.

Separately, U.S. Treasury Secretary Scott Bessent said that President Trump’s recently announced 15 percent global tariff is likely to take effect this week.

Despite the broader market decline, Berkshire Hathaway shares rose during the session.

Both Class A and Class B shares of the conglomerate gained more than 1 percent after Berkshire disclosed that it had resumed repurchasing its own shares for the first time since 2024.

The company also said Chief Executive Officer Greg Abel purchased $15 million worth of Berkshire stock, according to the disclosure.