Dow Drops Over 700 Points Amid Israel-Iran Conflict Escalation

U.S. stock markets experienced significant declines following Israeli airstrikes on Iranian nuclear facilities and military targets, triggering fears of escalating conflict between the two nations. The Dow Jones Industrial Average fell between 600 and 770 points, marking one of the largest single-day drops in recent weeks, with the S&P 500 and Nasdaq also declining over 1%. Oil prices surged dramatically, with Brent crude rising up to 7-14%, reflecting concerns about potential supply disruptions from the Middle East, while gold and other safe-haven assets saw price increases. Energy stocks benefited from the spike in oil prices, whereas consumer discretionary, airline, and tech stocks such as Amazon, Apple, and Tesla declined. The heightened geopolitical tensions also caused a spike in market volatility indexes and led investors to move towards defense stocks and U.S. Treasuries. This market reaction underscores the fragility of the global economy amid inflation, interest rate uncertainties, and geopolitical risks.