US Equity Indexes Drop as Surging Crude Oil Prices Push Treasury Yields Higher

12:32 PM EDT, 03/12/2026 (MT Newswires) -- US equity indexes slumped in midday trading on Thursday after Iran threatened to use the war in the Middle East to jack up crude oil prices.

The Nasdaq Composite slumped 1.4% to 22,409.1, with the S&P 500 down 1% to 6,706.2 and the Dow Jones Industrial Average lower by 1% to 46,933.7.

Energy and utilities led the gainers intraday. Industrials, consumer discretionary, and communication services were among the decliners.

West Texas Intermediate crude oil futures jumped 8.6% to $94.77.

Oil prices climbed after Iran's new supreme leader, Mojtaba Khamenei, issued his first public message, warning that the Strait of Hormuz will remain closed as a "tool of pressure," CNN reported.

Read on Iranian state television by an anchor, the message also said that all US bases in the region "will be attacked" unless they shut down, the news report said.

Most US Treasury yields rose, with the 10-year yield up 4.1 basis points to 4.25%. The two-year yield jumped 8.2 basis points to 3.72%.

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