U.S. equities declined Thursday as rising oil prices and continued geopolitical tensions in the Middle East weighed on investor sentiment. The Dow Jones Industrial Average led losses, falling more than 600 points, or over 1%. The S&P 500 dropped about 0.7%, while the tech-heavy Nasdaq Composite slipped roughly 0.4%.

The declines followed a brief rebound session earlier in the week as markets struggled to gain momentum amid escalating geopolitical uncertainty.

Middle East Conflict Dominates Market Focus

Investor attention remains fixed on the intensifying conflict involving the United States, Israel, and Iran, which has now entered its sixth day. Donald Trump said Wednesday that the U.S. was “doing very well on the war front,” while the White House reported that American forces had struck more than 2,000 targets and were moving toward what officials described as “complete and total control of Iranian airspace.” The widening conflict has rattled financial markets as traders assess the potential impact on global energy supply.

Oil Prices Climb Again

Energy markets remain volatile as supply concerns intensify. West Texas Intermediate Crude traded near $79 per barrel, while Brent Crude rose above $84. Iran is the fourth-largest oil producer in OPEC, meaning any disruption to its production or exports could significantly affect global energy markets.

While supply fears briefly eased after the United States announced plans to offer risk insurance and naval escorts for ships traveling through the Strait of Hormuz, renewed attacks on energy infrastructure and tankers have kept markets on edge. Higher oil prices also raise concerns that inflation could remain elevated, potentially complicating the interest rate outlook for the Federal Reserve.

Investors Await Key Economic Data

Market participants are also looking ahead to Friday’s highly anticipated U.S. employment report, which will provide fresh insight into the strength of the labor market. Strong or weak jobs data could influence expectations for future monetary policy decisions from the Federal Reserve. Meanwhile, earnings season continues with results expected from Costco and Marvell Technology after Thursday’s market close.