Dow sinks 100 points, oil nears $100 as Strait of Hormuz traffic remains limited

US stocks sank Thursday morning as oil jumped back near $100 after Iran accused the US of violating its ceasefire agreement and traffic through the Strait of Hormuz remained limited.The Dow Jones Industrial Average slumped 128 points, or 0.3%, by approximately 9:35 a.m.ET, while the S&P 500 and Nasdaq each fell 0.1%.Brent crude oil prices jumped 3.9% to $98.42, while West Texas Intermediate crude rose 4.6% to $91.74.National average gasoline prices, which typically lag movement in oil benchmarks by a few weeks, continued to climb above $4 a gallon – hitting $4.17 on Thursday, according to AAA.It was a sharp turnaround from the previous day, which saw the Dow clinch its biggest gain since April 2025 while oil prices eased down near $95 a barrel after President Trump announced a two-week ceasefire with Iran.Trump emphasized that the ceasefire was contingent on the reopening of the Strait of Hormuz, a vital maritime route for 20% of the world’s oil supply – but Iran is still reportedly blocking many ships from passing through the waterway, blaming it on a broken agreement.Late Wednesday, Iran accused the US of breaking a joint ceasefire agreement as Israel launched a massive blitz on Tehran-backed Hezbollah in Lebanon.“Now the very ‘workable basis on which to negotiate’ has been openly and clearly violated, even before the negotiations begin,” Iran’s parliamentary speaker, Mohammad Bagher Ghalibaf, wrote in a statement on X.

“In such [a] situation, a bilateral ceasefire or negotiations is unreasonable.” Iran has also reportedly been seeking tolls as high as $2 million per ship for safe passage through the strait, which could further complicate the free flow of crude through the Persian Gulf.Morning Report delivers the latest news, videos, photos and more.

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