Wall Street stocks tumbled Thursday as oil prices spiked amid escalating US-Iran tensions, with the market's final hour showing heightened volatility. The selloff accelerated in the closing minutes as investors rushed to safe havens, with the Dow Jones shedding over 400 points and the S&P 500 dropping sharply. Energy stocks were among the few gainers as crude oil futures jumped more than 4% to $84 per barrel.

The market's decline came despite a morning rally that quickly reversed after news of heightened military activity in the Middle East. Treasury yields fell as investors sought safety, with the 10-year note dropping below 3.8%. The VIX volatility index surged above 20, signaling increased investor anxiety. Financial stocks led the decliners, with major banks falling between 2% and 3%.

Traders pointed to the sudden reversal as evidence of fragile market sentiment, with technical levels failing to provide support. The Russell 2000 index of small-cap stocks fared worse than large-cap benchmarks, falling 2.5%. The day's volatility underscores how quickly geopolitical events can disrupt what had been a steady market advance in 2026.