Wall Street opened the last trading day of the week in the red Friday, with crude oil climbing to its highest level since early May and investors rattled by both Middle East tensions and a stubborn tech sell-off.

By about 10:40 a.m. ET, the Dow Jones Industrial Average was down 702 points, or 1.3%. The S&P 500 slid 0.4%. The Nasdaq traded roughly flat after Thursday, when it suffered its worst day since June.

Oil is the main driver. Brent crude futures rose 2.7% to $116.24 a barrel, putting the benchmark on track for a weekly gain of more than 10%. West Texas Intermediate gained 2.9% to $102.40. At the pump, the national average for gasoline reached $4.29 a gallon, according to AAA.

The jitters stem from reports that the US has drawn up plans for fresh strikes after the midterm elections and has ordered non-emergency personnel and their families to leave Saudi Arabia. The New York Times reported that US and Israeli officials are weighing a “short but intensive” operation in Iran once the elections are over. Iran’s army chief reportedly responded that the country’s military is fully prepared for “asymmetric warfare” and has built up its capabilities.

The Strait of Hormuz is at the center of a public dispute. Iran’s Islamic Revolution Guards Corp said Thursday that four vessels were struck and caught fire in the Gulf, while another three hit mines in the strait, according to a state-backed news agency. President Trump pushed back in a Truth Social post, accusing Iran of lying and claiming the country “is doing everything they can to drive up the price of Oil prior to the US Midterm Election.” He wrote that Iran is “making up fake hits, mines, and everything else,” arguing that more oil is moving through the strait now than before the conflict began.

The second source of pressure is tech. Investors remain uneasy that major companies are spending too heavily on artificial intelligence after a round of huge spending announcements, and interest rates remain stubbornly high. CoreWeave, an AI cloud provider that rents out computing capacity, fell another 0.9% Friday after plunging more than 10% the day before. The so-called “neocloud” has become a bellwether for companies spending big now in hopes of AI-related revenue later.

Chip stocks offered a little relief. AMD rose 1.9%, Micron gained 3.5% and Nvidia ticked up 0.5% in Friday morning trading.

In the bond market, the 10-year Treasury yield edged up to 4.994%, while the 30-year rose to 5.317%. Both long-term yields had dropped sharply on Thursday.

Frequently Asked Questions

Why did the Dow fall 700 points on this Friday?

The Dow was down about 702 points (1.3%) by 10:40 a.m. ET, driven by rising oil prices tied to Middle East tensions involving Iran and the Strait of Hormuz, plus a tech sell-off over heavy AI spending.

How high did oil prices rise?

Brent crude futures rose 2.7% to $116.24 a barrel, putting it on track for a weekly gain of more than 10%, while West Texas Intermediate gained 2.9% to $102.40.

What is the national average gas price right now?

According to AAA, the national average gasoline price reached $4.29 a gallon.

What is happening in the Strait of Hormuz?

Iran’s Revolutionary Guards said four vessels were struck and caught fire in the Gulf and three more hit mines in the strait, but President Trump disputed these reports as fake.

Why is CoreWeave stock falling?

CoreWeave, an AI cloud provider, fell another 0.9% after plunging more than 10% the previous day, reflecting investor unease over companies spending heavily on artificial intelligence before seeing returns.

Editorial Transparency. A first draft of this story was produced with AI-assisted writing tools, then reviewed for accuracy and tone by the named editor before publication. More on our process: Editorial Policy.