Global markets tumbled Tuesday as intensifying hostilities between the United States and Iran sent shockwaves through equities, crypto assets, and commodities, with oil emerging as the sole beneficiary of the geopolitical turmoil.
The S&P 500 shed 2.2%, while the Nasdaq Composite retreated 2.1% and the Dow Jones Industrial Average dropped more than 2.3%. Energy stocks bucked the trend, posting gains as crude prices surged.
Digital assets reversed course after Monday’s rally. Bitcoin declined roughly 3%, sliding from nearly $70,000 to approximately $67,500. Ethereum fell 4% to about $1,940, and Solana lost 4% to trade near $83.50.
Precious metals suffered steep losses despite their traditional safe-haven appeal. Gold tumbled more than 5%, pulling back toward $5,000 per ounce, while silver cratered nearly 10% to around $80.
Crude oil defied the broader risk-off sentiment. Brent climbed 7.3% to surpass $84 per barrel, and West Texas Intermediate jumped 8.4% to trade above $77.
The rally in energy prices and oil followed remarks made Monday by an Iranian Revolutionary Guard commander announcing the closure of the Strait of Hormuz, a key chokepoint for global oil shipments, and warning that vessels attempting to pass could face military action.
The conflict entered its fourth consecutive day of escalation. Drone strikes reportedly hit the US embassy compound in Riyadh as Iranian forces expanded regional operations.
The State Department ordered diplomatic personnel evacuated from Bahrain, Iraq, and Jordan. Hezbollah, backed by Tehran, launched coordinated missile and drone attacks toward Tel Aviv.
Defense analysts have raised concerns about whether Gulf nations, including the UAE, can sustain prolonged aerial bombardments given the strain on their missile interception systems.
President Donald Trump indicated the conflict could extend beyond four weeks, deepening uncertainty across financial markets worldwide.
