U.S. stocks declined as doubts emerged regarding the reopening of the Strait of Hormuz, a crucial energy transit channel. The Dow Jones Industrial Average dropped 464.02 points, or 0.85%, to 53885.10. The S&P 500 lost 0.18%, and the Nasdaq Composite fell 0.06%.

Oil prices climbed $2.07 to $77.29 a barrel amid growing trepidation about the Strait. Earlier in the week, oil had plunged on reports of an Iran-Oman agreement to reopen the channel, but the U.S. might oppose a deal granting Iran formal control.

Treasury yields and the U.S. dollar rose ahead of July jobs data. The 10-year Treasury note yield increased to 4.670%, and the two-year Treasury yield rose to 4.242%. Weekly jobless claims edged up to 199,000. Investors anticipate a Federal Reserve rate hike due to a strong jobs market, volatile oil, and inflation.

Home builders declined as pending home sales reportedly hit a five-month low. The average 30-year fixed mortgage rate reached 6.69%, its highest in over a year.