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Dow slips as Red Sea escalation lifts crude and raises war risk

Brent is up about 7% above $101, while WTI is around 6% higher past $92, pushing the week’s rebound back into prior lows.

Reported · Written up by our desk · Major Pairs

The Dow Jones Industrial Average fell about 1.1%, trading near 51,600 on Thursday after giving back a two-day recovery. The move takes the index through the prior weekly floor near 51,800 to its lowest level in roughly three weeks, FXStreet noted.

FXStreet pointed to accelerating Middle East tension tied to the Red Sea, with attacks on Saudi tankers and a broader maritime embargo shift from rhetoric into action. The outlet said the escalation is also being linked to potential expanded U.S. strikes, including comments that preparations are complete and a decision is close.

As crude reacted faster than equities, Brent rose about 7% to above $101 for the first look in roughly two months, while West Texas Intermediate gained about 6% beyond $92. FXStreet added that the higher levels put both benchmarks near levels last seen before last month’s peace framework, and it cited RBC Capital Markets arguing a wider regional war could test $128 on Brent and potentially $146 from 2008.

The broader market showed stress alongside the Dow’s drop, with the S&P 500 down around 1.2% and the Nasdaq down more than 2% on the day. FXStreet also highlighted company-specific pressure, citing Alphabet’s roughly 6% decline after it lifted its 2026 capital spending forecast, and Tesla’s roughly 13% drop after a second-quarter miss.

Latest closeWTI crude $87.52 ▲3.1%|Brent $94.43 ▲3.8%|S&P 500 7,509.20 ▲0.9%

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