Oil Jumps Above $100 After IEA Warning; Dow Falls 600 Points

Global financial markets turned volatile after crude oil prices surged above $100 per barrel amid escalating geopolitical tensions in the Middle East. Concerns about major supply disruptions intensified after the International Energy Agency (IEA) warned that the market is facing a potentially record level of disruption to global oil flows.

The crisis has deepened around the Strait of Hormuz, a key maritime chokepoint that normally carries roughly one‑fifth of the world’s oil trade. Shipping traffic has been severely disrupted as attacks on tankers and heightened security risks force vessels to avoid the route, raising fears of a prolonged supply shock in global energy markets.

The surge in energy prices triggered a broad risk‑off move in equity markets. The Dow Jones Industrial Average dropped roughly 600 points during trading, while the S&P 500 and Nasdaq also moved lower as investors assessed the potential economic fallout from higher energy costs and geopolitical instability.

In response to the supply shock, the IEA said member countries are preparing a record release of oil from strategic reserves in an effort to stabilize markets. However, analysts warn that unless shipping through the Strait of Hormuz normalizes, oil prices and financial markets could remain highly volatile in the coming weeks.