Dow pares steep losses but gas prices surge after Iran orders Strait of Hormuz closure
US stocks fell Tuesday, though they dramatically pared back earlier losses after President Trump said the Navy would escort oil tankers through the Strait of Hormuz if necessary – as investors fear a prolonged conflict could spike gasoline prices.The Dow Jones Industrial Average closed down 403 points, or 0.8% – marking a wild rebound after it was down more than 1,200 points earlier in the day. The S&P 500 and Nasdaq fell 1% and 0.9%, respectively.At their lowest points during the rollercoaster trading session, the S&P was down 2.5% and the Nasdaq lost 2.7%.National average gasoline prices spiked overnight to roughly $3.11 a gallon, according to AAA, as Brent crude oil jumped about 2% Tuesday to more than $77 a barrel.Wall Street’s volatility index – also known as the fear gauge – jumped to its highest level since November, while gold futures dropped 3.4% to $5,129.40 an ounce after panicked investors had flocked to the safe-haven asset on Monday.Earlier in the session, investors dramatically dumped stocks – especially energy corporations and risky assets like tech – over concerns that the widening conflict in Iran could disrupt key oil supplies.After joint US-Israeli airstrikes on Iran killed Iranian Supreme Leader Ayatollah Ali Khamenei over the weekend, Tehran responded with attacks on neighboring countries including the United Arab Emirates, Kuwait and Bahrain.Trump has said the conflict could last “four weeks or so,” adding to market jitters.Tehran reportedly announced it would close the Strait of Hormuz and warned it will attack any vessel attempting to transit the narrow waterway that carries about 20% of the world’s oil supply.Markets recovered some losses Tuesday after Trump said the US Navy will guide oil tankers through the passage, if necessary.A potential spike in gasoline prices is also raising fresh concerns about inflation – a key factor for investors already worried that rising energy costs could complicate the Federa...