The Dow Jones Industrial Average dropped more than 2%, losing over 1,100 points, News.Az reports, citing foreign media.
The S&P 500 and the Nasdaq Composite also fell more than 2% as oil prices surged on fears of supply disruptions.
The new wave of Israeli-led attacks rattled markets that had largely recovered on Monday from the initial shock of the US-Iran hostilities. Major US indexes had rebounded from steep intraday losses to close mostly higher, supported by dip-buying.
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Strikes on Iran and Lebanon have intensified a conflict that investors fear could weigh heavily on global markets. Attention is now focused on Tehran’s response after Iran targeted oil infrastructure and other sites across a broad stretch of the region, with at least nine countries reporting impacts.
US President Donald Trump added to concerns about a prolonged conflict by declining to rule out deploying American ground troops. “Whatever the time is, it’s OK — whatever it takes,” Trump said, noting that initial projections suggested four to five weeks but that the US could sustain operations far longer.
Crude prices continued climbing on worries about disruptions to key supply routes, rising more than 8.5% and fueling inflation concerns. Gold prices, meanwhile, reversed course after a four-day rally, dropping more than 3%.
Beyond geopolitical tensions, investors are also monitoring corporate earnings. Shares of Target rose in premarket trading after the retailer reported holiday and full-year sales that met Wall Street expectations. Earnings from Ross Stores, AutoZone, and Best Buy are also due later Tuesday.
