Oil up 8.2%, gas rises 37%, stock market sinks as Trump lacks clear Iran exit plan

U.S. stocks tumbled Thursday, April 2, with the Dow Jones Industrial Average falling 631 points (1.35%) after President Donald Trump failed to devise a clear exit strategy for a U.S.-Israeli war with Iran.

Following the vague address, the oil prices skyrocketed to above $109 a barrel.

The S&P 500 dropped 1.25%, while the Nasdaq sank 1.68%. Asian and European markets also showcased a sharp decline, with Japan’s Nikkei 225 falling 2.38% and Germany’s DAX index dropping 2.5%.

Earlier this week, investors had some optimism that the White House might seek a diplomatic resolution.

But those hopes vanished late Wednesday when President Trump, in his prime-time address, vowed to hit Iran “extremely hard” and pummel the country “back to the Stone Ages.”

He predicted that the war would last for at least two to three weeks.

The uncertainty on when the Strait of Hormuz will reopen, which is a chokepoint for one-fifth of the world's oil supply, contributed to oil price volatility. Brent crude oil futures rose 8.2 percent to above $109 per barrel, while U.S. crude oil futures rose 13.1 percent to $113.28.

Moreover, the U.S. gasoline prices rose to 37% since the war began, now averaging $4.08 per gallon.

As reported by Dow and S&P 500, it is the worst quarterly performance since September 2022.