Dow Jones tumbles 1100 points as fears of prolonged US-Iran war jolts Wall Street

US stocks slid sharply on Tuesday, March 3, as renewed airstrikes by American and Israeli jets on Iranian targets rattled financial markets and intensified concerns of a prolonged regional conflict.

The latest escalation in West Asia triggered a broad sell‑off across Wall Street, with investors increasingly shifting toward safer assets amid rising geopolitical uncertainty.

The S&P 500 fell around 1.6%, while the Dow Jones Industrial Average (DJIA) and the Nasdaq Composite both dropped roughly 1.8% in early trade. At 8.33 PM IST, Dow Jones dropped 1090 points, or 2.23% lower, while S&P 500 dipped 2%, or 136 points. The Nasdaq tumbled over 500 points, or 2.2%.

Oil prices surged more than 8.5% as traders assessed the risk of supply blockages along key West Asian routes, adding renewed pressure to inflation expectations.

Gold, which had rallied for four consecutive sessions, reversed course and slid more than 3% as markets reacted to shifting risk sentiment.

President Donald Trump further fuelled anxiety after refusing to rule out deploying American troops on the ground, signalling that the conflict could stretch on for weeks or even longer.

“We have the capability to go far longer than that,” he said, reinforcing fears of deeper US involvement.

The Street now expects heightened volatility as Tehran prepares its next move following Iran’s earlier strikes on oil infrastructure and other targets across multiple regional states.

With at least nine countries reporting impacts from the widening confrontation, global markets are bracing for sustained turbulence.