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US stocks opened lower on Friday, with major indices on track for a fourth straight week of losses as escalating tensions in the Middle East kept investors on edge. The Dow Jones Industrial Average fell 279 points, or 0.6%, while the S&P 500 declined 1% and the Nasdaq Composite dropped 1.3% in early trade.
The weakness comes amid continued conflict between Iran and Israel, including fresh strikes on energy infrastructure in the Gulf. Investor sentiment was further weighed down by reports that the Pentagon is deploying thousands of additional Marines to the region, raising fears of a deeper US involvement in the conflict.
Oil markets remained volatile, with prices swinging sharply on every headline related to the crisis. Brent crude hovered near $108 per barrel after fluctuating through the session, while West Texas Intermediate (WTI) traded around $95. Elevated oil prices and concerns over supply disruptions, particularly around the Strait of Hormuz, have added to inflation worries and market uncertainty.
Market participants are closely tracking the potential for further escalation, including the possibility of US action to secure key energy routes. “If this is an escalation involving troops on the ground, then we’re probably in for at least a couple more weeks of this sort of market,” said Ross Mayfield to CNBC, investment strategist at Baird, noting that equities may not have fully priced in the risks yet.
Adding to the geopolitical rhetoric, US President Donald Trump criticised NATO, calling it a “paper tiger” and urging allies to take more responsibility in addressing the situation around the Strait of Hormuz.
