The Dow Jones plummeted 628 points! Oil prices surged to near $100 amid concerns of a potential US-Iran conflict, pressuring global stock markets.
U.S. stock markets fell sharply on Tuesday after oil prices surged amid tensions between the U.S. and Iran. Investors were also concerned about inflationary pressures and the Federal Reserve's interest rate direction. European and UK markets were flat, while gold weakened ahead of the release of U.S. inflation data.
US stock markets plunged, fueled by rising oil prices and investor concerns over inflation.
U.S. stock markets closed lower on Tuesday (September 8, 2026) , with the Dow Jones index plummeting more than 600 points, its sharpest decline in nearly three weeks. This followed a surge in oil prices amid escalating military tensions between the U.S. and Iran, raising investor concerns that inflation could accelerate and impact the Federal Reserve's interest rate decisions.
Brent crude oil prices surged to near $100 per barrel following reports of another Iranian attack on US warships, an event that had previously remained undisclosed. Meanwhile, the yield on 10-year US Treasury bonds temporarily rose to 4.8%, adding further pressure on the stock market.
Investors are also watching U.S. inflation data, including the Producer Price Index (PPI) and the Consumer Price Index (CPI), to be released later this week, ahead of the Federal Reserve's monetary policy meeting on September 15-16.
- Dow Jones Industrial Average Closed at 52,786.07 points, down 628.18 points (-1.18%)
- S&P 500 Index Closed at 7,673.52 points, down 45.08 points (-0.58%)
- Nasdaq Composite Index Closed at 26,421.413 points, down 85.578 points (-0.32%)
European stock markets were stable as investors watched inflation and the situation in the Middle East.
European stock markets closed flat on Tuesday , pressured by rising oil prices and concerns that a war in the Middle East could escalate, while investors assessed the direction of the European Central Bank's (ECB) monetary policy.
European stock markets showed mixed movement as investors continued to monitor the impact of higher energy prices on inflation and the regional economy, resulting in major indices trading within narrow ranges.
- STOXX 600 Index Closed at 649.60 points, down 0.30 points (-0.05%)
- DAX German stock market index Closed at 26,007.63 points, up 1.10 points (0.00%).
- CAC 40 Index of the French stock market Closed at 8,317.98 points, up 11.83 points (+0.14%)
The UK stock market weakened as investors were wary of inflation risks.
The London stock market closed slightly lower on Tuesday , after oil prices surged and investors assessed the impact of tensions in the Middle East on inflation and the global economy.
The investment climate remains pressured by rising U.S. bond yields, as investors await key U.S. economic data that could impact the direction of financial markets and interest rate policy in the coming period.
- FTSE 100 Index UK Stock Market Closed at 10,811.66 points, down 10.47 points (-0.10%)
Oil prices surged to near $100 amid concerns that a US-Iran conflict would impact supply.
Global oil prices surged on Tuesday following reports that Iran launched another attack on U.S. Navy ships, while Iranian-backed Houthi rebels attacked energy facilities in Saudi Arabia, raising concerns that oil supplies from the Middle East could be disrupted.
Brent crude oil prices surged to $99.46 per barrel during trading, the highest level since July 24, before closing at $97.92. In after-hours trading, prices climbed above $99 per barrel again.
Oil prices received further support from concerns about attacks on energy shipping routes in the Middle East, with prices already rising more than 8% in September. Meanwhile, Goldman Sachs raised its December 2569 price estimates for Brent and WTI oil by $5 per barrel.
- WTI crude oil price (October delivery) It closed at $93.03 per barrel, up 2.8%.
- Brent crude oil price (November delivery) It closed at $97.92 per barrel, up 2.2%.
Gold prices weakened as investors worried about inflation ahead of CPI data release.
Global gold prices fell on Tuesday after a surge in oil prices fueled concerns that inflation would accelerate and put increased pressure on the Federal Reserve's interest rate direction. Investors are also awaiting U.S. inflation data to assess the outlook for monetary policy in September.
Gold prices were also pressured by stronger-than-expected U.S. employment data for August, which increased the likelihood of a Federal Reserve interest rate hike at this month's meeting. The market now projects such a probability at around 60%.
Analysts believe gold prices will remain within a limited range, as the prospect of rising interest rates reduces the attractiveness of gold, an asset that does not yield interest payments. The market is also awaiting PPI data on Thursday and CPI data on Friday.
- Spot Gold Price Closed at $4,385.85/ounce, down 0.4%.
- Gold price on Comex market (December delivery) Closed at $4,431.00/ounce, down 1.0%.
The dollar remained stable, the yen strengthened to its highest level in seven months, as investors awaited the Federal Reserve's decision.
The dollar remained stable against major currencies, while the yen strengthened to its highest level in nearly seven months amid buying interest in the yen on expectations that the Bank of Japan (BOJ) may accelerate monetary tightening and close carry trade positions.
The yen strengthened to 152.89 yen per dollar during intraday trading, its strongest level since February, before weakening to 154.25 yen per dollar towards the end of trading.
The dollar remains under pressure from concerns about the situation in the Middle East and inflation prospects following a surge in oil prices, as investors await U.S. CPI and PPI data, which will be key factors in assessing the Federal Reserve's interest rate direction.
- Dollar Index It stands at 98.84 points, down 0.3%.
- Euro/Dollar It stood at $1.1627, remaining stable.
- Dollar/Yen It stood at 154.25 yen, down 0.06%.
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