Dow sinks 900 points as Trump’s Iran warning sends oil surging

Dow drops over 900 points as crude climbs above $90 amid US-Iran war and February payrolls decline.

• US stocks fell as oil prices surged amid US-Iran conflict
• Nonfarm payrolls dropped by 92,000 in February
• Oil prices rose above $88 per barrel, Brent traded above $90

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US stocks fell on Friday, extending weekly declines, as oil prices surged amid the ongoing US-Iran conflict and investors reacted to weaker-than-expected labour market data.

The Dow Jones Industrial Average dropped 903 points, or 1.9 percent, while the S&P 500 and Nasdaq Composite each declined 1.6 percent during the session.

The losses came as investors assessed a combination of rising energy prices and an unexpected drop in US job creation.

Data released on Friday showed that nonfarm payrolls fell by 92,000 in February, according to the latest labour market figures cited in the report.

The decline contrasts with a downwardly revised gain of 126,000 jobs in January and was significantly weaker than the 50,000 job increase economists surveyed by Dow Jones had expected.

The US unemployment rate also rose to 4.4 percent from 4.3 percent.

Energy markets moved higher as investors weighed the impact of the war between the United States and Iran on global oil supply.

West Texas Intermediate crude futures rose above $88 per barrel, while Brent crude traded above $90 per barrel during the session.

Oil prices reached their highs after US President Donald Trump said in a post on Truth Social that there would be no agreement to end the war without an “unconditional surrender” from Iran.

In an interview with the Financial Times, Qatar’s energy minister said energy producers in the Gulf may need to declare force majeure in the coming days, potentially suspending production.

The minister said such a development could push oil prices to $150 per barrel.

“If this war continues for a few weeks, GDP growth around the world will be impacted,” he told the newspaper.

“Everybody’s energy price is going to go higher. There will be shortages of some products and there will be a chain reaction of factories that cannot supply,” he added.

Companies exposed to fuel costs were among those declining in Friday trading.

Shares of Royal Caribbean fell 4 percent, extending losses this week. The cruise operator’s stock has declined 13 percent over the week, according to the report.

Caterpillar shares also dropped 3 percent, while retailers Walmart and Costco traded slightly lower as investors assessed the effect of higher fuel prices on consumer spending.

The Friday sell-off added to a mixed week for US equities.

The S&P 500 is on track to decline about 0.7 percent for the week, while the Dow Jones Industrial Average has fallen 2.1 percent over the same period.

The Nasdaq Composite has outperformed, heading toward a weekly gain of around 0.4 percent, according to the report.