Oil prices jumped more than 9% after Iran attacked additional ships and its new supreme leader vowed to continue fighting. Brent crude surged to its largest one-day increase since 2020 following President Trump's statement that stopping Iran's nuclear program took priority over oil prices. The Middle East conflict intensified as tensions between Iran and Gulf states worsened.

U.S. stocks suffered significant losses as surging oil prices hit the market hard. The Dow Jones Industrial Average fell 739 points, while the S&P 500 and Nasdaq Composite each dropped more than 1.5%. The selloff reflected investor concerns about rising energy costs and potential economic impacts from the escalating Gulf crisis. Energy stocks saw mixed reactions to the price spike.

Corporate news included multiple major developments. Costco faces a class-action lawsuit seeking refunds for tariff-related price increases. Software maker Atlassian announced plans to lay off 10% of its workforce to invest more in AI, though its stock still slipped nearly 3%. Honda expects to book up to $15.7 billion in charges related to its electric vehicle strategy reassessment, potentially swinging to its first annual loss in decades.