US stocks open in the red: S&P down 0.4%, Dow slips 400 pts

US equities declined on Thursday as investors paused following strong gains in the previous session and monitored another surge in oil prices amid tensions in the Middle East.

The S&P 500 fell 0.4%, while the Nasdaq Composite also declined by the same margin.

The Dow Jones Industrial Average dropped 398 points, or 0.8%, reflecting renewed caution across markets.

The pullback came as crude prices moved higher after Iran said it struck an oil tanker with a missile, raising fresh concerns about the security of global energy shipments.

Oil surges on tanker strike

West Texas Intermediate crude futures jumped 4% to trade above $77 per barrel, while Brent crude futures — the international benchmark — rose more than 3% to above $83 per barrel.

The spike renewed fears that escalating tensions in the region could disrupt oil and gas supplies, particularly through the Strait of Hormuz, a critical global energy transit route.

Roughly 20% of the world’s oil supply moves through the strait, making any threat to shipping activity a key risk for global energy markets and inflation expectations.

Markets pause after tech-led rally

Thursday’s decline followed a strong session the previous day.

Stocks rose on Wednesday, supported by gains in technology and semiconductor companies.

The Dow ended a three-day losing streak during that session, while both the S&P 500 and Nasdaq Composite posted solid advances.

Oil prices had also stabilised on Wednesday after earlier gains.

West Texas Intermediate crude futures settled up just 0.13%, while Brent crude futures ended the session largely unchanged.

Hormuz security remains key focus

Earlier in the week, fears of major disruptions to regional energy supplies eased somewhat after President Donald Trump said the United States was preparing to provide risk insurance and naval escorts for vessels traveling thrlough the Persian Gulf.

The move aims to ensure that ships can continue operating through the Strait of Hormuz despite rising geopolitical tensions.

However, the White House did not provide a timeline for when the strait would be fully secure for oil tankers.

Energy markets drive sentiment

Oil price movements have become a central driver of market sentiment as investors evaluate the broader economic implications of rising energy costs.

Higher crude prices can push inflation upward and complicate expectations for interest-rate policy, adding another layer of uncertainty for equity markets already navigating geopolitical risk.

With crude prices climbing again after Iran’s reported tanker strike, investors remain focused on whether tensions in the region escalate further or whether measures to protect shipping routes will stabilise energy markets.

For now, the volatility in oil continues to shape the direction of global equities, keeping traders cautious even after brief rallies in the broader market.