NEW YORK — Wall Street stocks fell on Friday as escalating tensions in the Iran conflict, including a fresh Iranian strike on a U.S. base in Saudi Arabia and continued restrictions on the Strait of Hormuz, increased concerns over energy supplies and economic risks.
The Dow Jones Industrial Average dropped 793 points, or 1.73 percent, to close at 45,166.64. The S&P 500 declined 1.67 percent, and the Nasdaq composite fell 1.93 percent. The declines extended recent volatility tied to Middle East developments and pushed the major indexes deeper into correction territory, with the Nasdaq more than 10 percent below its recent record high.
Oil prices remained elevated amid the disruptions. Brent crude traded above $112 a barrel in recent sessions, while U.S. West Texas Intermediate crude hovered near $99 a barrel. Iran has maintained restrictions on commercial shipping through the Strait of Hormuz since early March, sharply reducing traffic in the waterway that normally carries about one-fifth of global oil trade. Only limited approved transits have been reported, forcing rerouting of vessels and increasing shipping costs.
The latest escalation followed an Iranian missile and drone attack on Prince Sultan Air Base in Saudi Arabia on Friday that wounded at least 12 U.S. service members. The base hosts U.S. troops and air assets supporting regional operations. Earlier in the week, Israeli forces conducted airstrikes on targets in Tehran and other areas of Iran. Houthi forces in Yemen also launched missiles toward Israel on Saturday.
President Donald Trump extended a deadline for Iran to reopen the Strait of Hormuz to April 6, citing backchannel discussions. The administration has increased U.S. troop levels in the region, with thousands of Marines deployed in recent days. The conflict, which began with U.S. and Israeli strikes on Iranian targets in late February, has contributed to broader market swings.
Technology and consumer stocks led the declines on Friday, while energy shares showed mixed results. The S&P 500 now stands about 7.2 percent below its peak earlier this year.
As of Sunday, stock futures pointed to continued caution. Maritime traffic in the Strait of Hormuz remained heavily restricted, and officials continued to monitor Iranian activity and diplomatic contacts aimed at resolving the conflict. Energy markets reflected sustained pressure from the ongoing disruptions.
