US Stocks Plunge as Oil Prices Soar
US stock indices fell sharply on Thursday, March 5, amid escalating fears of a war with Iran.
The Dow Jones Industrial Average dropped by about 785 points, or 1.6%.
The S&P 500 declined by 0.6%.
The Nasdaq Composite fell by 0.3%.
Shares of companies like Boeing and Caterpillar led the sell-off amid concerns about a global economic slowdown. Oil prices surged, with West Texas Intermediate crude surpassing $80 a barrel for the first time since January 2015, rising 6%, while Brent crude climbed 3% to over $84 a barrel.
Investor Concerns and Official Statements
CAFRA Research's chief market strategist, Sam Stovall, said investors are wondering if America has overextended itself, adding, "Can President Donald Trump escort every ship through the Strait of Hormuz? What kind of responsibility are we putting ourselves in?"
US Defense Secretary Pete Hegseth asserted that the US is "achieving a decisive victory" in the conflict with Iran, while Treasury Secretary Scott Bisnett announced that the 15% global tariffs would take effect this week.
In contrast, Berkshire Hathaway emerged as a bright spot after its shares rose more than 2% following the announcement that it would resume share buybacks for the first time since 2024, with CEO Greg Abel purchasing $15 million worth of shares.
