US Strikes on Iran Send Oil Above $94, Dow Drops 400 Points

U.S. strikes on Iran triggered a sharp risk-off move in the September 1 session. Oil prices jumped above $94 a barrel on fears that Iran could restrict shipping through the Strait of Hormuz, a key chokepoint for global crude exports. The Dow Jones Industrial Average fell roughly 400 points as investors moved out of equities and into safer assets. The move rewarded a narrow slice of the market. Refiners and tanker operators gained as higher oil prices and shipping risk premiums flowed straight into their margins and freight rates, according to Seeking Alpha's Hormuz coverage. Airlines and other fuel-sensitive sectors faced the opposite pressure from costlier crude. What remains unresolved is the scope of Iran's response and the state of its nuclear program. The International Atomic Energy Agency said it does not know the current status of Iran's nuclear facilities following the strikes, leaving investors to price a wide range of outcomes for the days ahead.