Oil Surges Past $90 as Iran Tensions Rattle Equity Markets

U.S. equities sold off sharply on Wednesday as President Trump’s escalating threats against Iran rattled investors and pushed crude oil prices to multi-month highs. The selloff was concentrated in chip stocks, with the sector ETF falling for the fourth time in five sessions.

Equities: Dow Drops Nearly 1,000 Points

The Dow Jones Industrial Average shed 953.33 points, or 1.87%, to close at 49,918.78 — its lowest finish in three weeks. The S&P 500 fell 1.62% to settle at 7,266.99, while the Nasdaq Composite dropped 1.98% to 25,169.50. All three major averages are now negative on the week. The selling intensified after President Trump signaled that negotiations with Iran were taking “too long” and threatened further military action, saying on social media: “now they will have to pay the price!!!” The comments came after U.S. forces launched strikes against Iran in response to the downing of a U.S. Army Apache helicopter near the Strait of Hormuz.

Energy: Oil Surges on Middle East Tensions

Oil prices jumped sharply as geopolitical risk in the Persian Gulf dominated commodity markets. West Texas Intermediate crude futures settled up 2.07% to $90.03 per barrel — the highest close since late April. Brent crude advanced 1.8% to $93.10. The Strait of Hormuz, through which roughly a fifth of the world’s oil passes, is a critical chokepoint, and traders are pricing in a meaningful risk premium. “Either investors are going to be proven right, that Trump will take care of it and we’ll get a deal with Iran, but if not, oil prices are going to have to go up a lot,” said Jed Ellerbroek, portfolio manager at Argent Capital Management.

Tech & Semiconductors: Chip Stocks Under Pressure

Chip stocks extended their recent decline, with the iShares Semiconductor ETF (SOXX) dropping more than 3% on the session. Micron Technology, Advanced Micro Devices, and Broadcom all closed lower for the fourth time in five sessions. The SOXX ETF has now given back roughly 10% from its recent peak, and traders say the pressure is partly structural: the massive SpaceX IPO expected on Friday is drawing liquidity away from high-flying chip names, with retail investors shedding winners to participate in what is expected to be the largest IPO in history.

Gold: Safe-Haven Metal Retreats from Record Levels

Gold fell 1.95% on Wednesday to $4,136.60 per troy ounce, retreating from the $4,400+ levels seen just two weeks ago. Despite the one-day decline, gold remains up 24.3% over the past 12 months, reflecting persistent demand for safe-haven assets in an environment of elevated geopolitical uncertainty and sticky inflation. Analysts say the pullback is technical in nature, with some traders reducing long positions to meet margin requirements elsewhere as equity volatility rises.

Key Market Levels — June 11, 2026 (U.S. Close)