Stocks tumble after Trump vows to hit Iran ‘extremely hard’ in coming weeks
Traders work on the floor of the New York Stock Exchange, March 31, 2026 in New York City. (Spencer Platt/Getty Images)
(NEW YORK) — Stocks tumbled worldwide on Thursday after President Donald Trump delivered a televised address vowing to hit Iran “extremely hard” over the coming weeks.
The Dow Jones Industrial Average fell 600 points, or 1.3%, while the S&P 500 dropped 1.2%. The tech-heavy Nasdaq declined 1.6%.
The selloff followed losses across Asian and European markets. Tokyo’s Nikkei 225 index slipped 2.3% and the pan-European STOXX 600 fell 1.3%.
Oil prices, meanwhile, surged as traders feared a persistent supply shortage amid the ongoing U.S.-Israeli war with Iran. U.S. oil prices climbed more than 10% on Thursday, registering at $112 a barrel.
Gasoline prices in the U.S. ticked up to $4.08 on average per gallon, marking a leap of $1.09 over the past month, AAA data showed.
This is a developing story. Please check back for updates.
Customers pump gas into their car at a 76 station, May 4, 2026 in Los Angeles (Justin Sullivan/Getty Images)
(NEW YORK) — Sky-high gasoline prices are hammering drivers across the United States as the Iran war chokes off global oil supply. California, however, may be feeling the sting more than anywhere else.
The average price of a gallon of gasoline in California clocks in at $6.13, standing 36% higher than the national average, AAA data showed. Some elected officials in the state have warned of a potential oil and gas shortage that could push prices up even further.
Siva Gunda, the vice chairman of the California Energy Commission, on Tuesday said at a hearing of the state assembly that California retains enough gasoline to satiate demand over the coming weeks.
“I do not see presently — at least up to six weeks — a supply shortfall,” Gunda said. “Beyond that, based on what we’re hearing from the industry and what we’ve observed, the pricing will move molecules to California, but it will come at a price.”
David Alvarez, a Democratic California state assembly member who represents Southern San Diego, warned of the potential impact on consumers.
“For six weeks, at least, there seems to be some certainty. But almost as certain is if this situation continues after six weeks, we would likely see some price increases,” Alvarez said.
Fuel prices in California typically run higher than other states, even in the best of times. That usual price disparity stems from regulations and taxes imposed in the Golden State, among other factors.
The Iran war has exacerbated the price pressure, exposing California’s dependence in large part on foreign imports, some analysts said. A shutdown of some key oil refineries in recent months worsened California’s vulnerability, slashing the state’s gasoline output in the absence of alternative fuel sources.
Still, the drop-off in gas supply is unlikely to produce a shortage of product at local gas stations, since an ongoing surge in prices should deter some buyers, analysts said. Under such a scenario, known as “demand destruction,” high prices make gas unaffordable for some drivers, forcing them to forgo gasoline use altogether.
“A shortage within the continental U.S. would take a really extreme situation, since prices respond to supply and demand,” Susan Bell, a senior vice president at the consulting firm Rystad Energy, told ABC News.
The Middle East conflict, which began on Feb. 28, prompted Iran’s effective closure of the Strait of Hormuz, a critical waterway that facilitates the transport of about one-fifth of the worldwide supply of oil. As a result, global oil prices have soared more than 50%.
The vast majority of oil that passes through the strait is bound for Asian markets, but some of it reaches the United States, including California. That dependence has worsened a widely felt problem: since oil prices are set on a global market, prices have climbed for just about everyone as buyers chase fewer barrels of crude.
California imports about three-quarters of its oil from foreign nations and Alaska, California Energy Commission (CEC) data shows. Roughly 30% of the state’s oil comes from the Middle East, especially Iraq and Saudi Arabia, according to the agency.
“California is challenged buying crude oil because they did buy from the Middle East,” Bell said.
The oil bottleneck has driven up the price of crude, straining the state’s supply chain. But the shortfall of gasoline in the state owes primarily to a decline in the availability of refined products, some analysts said.
California ships in a portion of its auto fuel from Asia, but those imports have been disrupted by the war, they added.
The shutdown of two major oil refineries in recent months has diminished the state’s ability to make up for the lost gasoline with in-state production, they added. A longstanding absence of adequate pipeline infrastructure connected to other states, meanwhile, has prevented California from turning to domestic supply.
Gasoline inventory in the state averaged 9.55 million barrels over the four weeks ending on April 24, CEC data shows. That figure puts inventories near the lowest level on record dating back to 2005, according to a Reuters analysis. That total stock includes non-California gasoline, blending components and California’s gasoline blend.
“California has designed an energy island in terms of the products we actually use. We’re not connected to the rest of the U.S. as efficiently as many other states are,” Paasha Mahdavi, a professor of energy governance and political economy at the University of California, Santa Barbara, told ABC News.
As a result, Mahdavi added: “There’s a crunch hitting gas stations.”
Despite the supply squeeze, California is unlikely to suffer from long lines at gasoline stations or customers leaving with empty tanks, some analysts said.
Rather, the price of gasoline will continue to move up, reaching such heights that some buyers will turn to alternatives or simply go without fuel, Severin Borenstein, a professor of Business Administration and Public Policy at the University of California, Berkeley, told ABC News.
If public officials were to put a price cap on gasoline, then customers would likely flock to the pump and empty inventories, Borenstein added. As prices surge, however, customers will fall out of the market instead.
“We don’t have any gas lines because we don’t regulate the price of gas,” Borsenstein told ABC News. “As much as people hate high gas prices, they hate gas lines even more.”
Photo of Wall Street (Matteo Colombo/Getty Images)
(NEW YORK) — Stocks slid on Monday morning in the first trading session since President Donald Trump announced a new 15% tariff on most imported goods, intensifying his effort to impose levies that were struck down by the Supreme Court.
The Dow Jones Industrial Average fell 90 points, or 0.1%, while the S&P 500 dropped 0.1%. The tech-heavy Nasdaq declined 0.1%.
Cryptocurrency prices tumbled in early trading on Monday. The price of bitcoin fell nearly 2%, putting it at about $66,075.
Gold prices jumped to their highest level in three weeks as investors sought the safe-heaven asset amid heightened uncertainty.
In a social media post on Monday, Trump reiterated his criticism of the Supreme Court.
The Supreme Court, Trump said, “accidentally and unwittingly gave me, as President of the United States, far more powers and strength than I had prior.”
Trump retains the power to levy a 15% tariff for up to 150 days under the Trade Act of 1974, which allows the president to address trade disparities with other countries.
Hours after the Supreme Court ruling on Friday, Trump said he would sign an executive order enacting a new 10% “global tariff,” invoking authority under Section 122. On Saturday, Trump escalated the tariff to 15%.
This is a developing story. Please check back for updates.
An ATACM long-range missile is fired towards Iran from an undisclosed location, Feb. 28, 2026. (U.S. Central Command)
(NEW YORK) — Stocks slid on Monday morning in the first trading session after the U.S.-Israeli attack on Iran over the weekend.
The Dow Jones Industrial Average fell 280 points, or 0.5%, while the S&P 500 dropped 0.5%. The tech-heavy Nasdaq declined 0.5%.
The strikes early Saturday morning prompted Iranian drone attacks and missile fire targeting U.S. military bases and Gulf countries. Tit-for-tat strikes rapidly widened into a regional war.
Four U.S. service members have been killed in action, U.S. Central Command said on Monday. At least 555 people have been killed in the U.S.-Israeli strikes on Iran, the Iranian Red Crescent Society said.
Oil prices spiked on Monday amid fears of a prolonged disruption of the Strait of Hormuz, a trading route that facilitates the transport of about one-fifth of global oil supply. Iran asserts control over the passage of tankers through the strait.
Brent crude prices soared more than 7%, threatening to push up prices for auto fuel and hike transport costs for other goods.
An array of global stock exchanges suffered marked losses on Monday.
In Europe, the pan-continental STOXX 600 index tumbled 1.6%. Tokyo’s Nikkei 225 index slipped 1.3%, while South Korea’s KOSPI dropped 1%.
Angelo Kourkafas, a senior global strategist for investment strategy at Edward Jones, on Monday acknowledged the volatility in markets but downplayed the long-term risk.
“While the situation remains dynamic, both historical patterns and market fundamentals offer some reassurance,” Kourkafas said in a statement to ABC News. “Geopolitical flare ups can create short term volatility, but recent episodes have produced limited and short lived market impacts.”
The CBOE Volatility Index (VIX), a measure of anticipated market volatility, climbed more than 7% on Monday.
President Donald Trump announced “major combat operations” against Iran on Saturday, with daytime strikes in the joint U.S.-Israel attack targeting military and government sites, officials said.
On Sunday, Iranian state television confirmed that Ayatollah Ali Khamenei was among those killed by airstrikes in Tehran on Saturday.
Iran is responding to the U.S.-Israeli operation with missile and drone attacks targeting Israel, regional U.S. bases and Gulf nations.
Israel is also intensifying its long-running strike campaign in Lebanon following fresh attacks by the Iranian-aligned Hezbollah militia.
In remarks on Monday, Iranian and American officials signaled expectations of an extended conflict.
The secretary of Iran’s Supreme National Security Council, Ali Larijani, said that Iran is prepared for a long war.
“Iran, unlike the United States, has prepared itself for a long war,” Larijani wrote in a post on X on Monday. He added that Iranian armed forces “have not engaged in any attacks except in defense.”
Gen. Dan Caine, the chairman of the Joint Chiefs of Staff, did not specify a timeline, but said, “This is not a single overnight operation. The military objectives … will take some time to achieve.”
