Global stock markets fell sharply Tuesday, with major U.S. indexes sliding after steep losses in Asia and Europe, as energy prices surged amid escalating tensions in the Middle East.
The S&P 500 dropped 2.4%, while the Dow Jones Industrial Average fell 2.5%. The Nasdaq Composite declined 2.6%, with broad-based losses across sectors.
The sell-off followed significant declines in Europe. Germany’s DAX index fell 3.9%, France’s CAC 40 lost 3.4%, and Britain’s FTSE 100 slipped 3.07%.
Energy markets remained volatile after reports that the Strait of Hormuz had been closed and that Qatar had been hit, pushing oil and natural gas prices sharply higher.
Financial stocks were among the hardest hit in Europe. In Frankfurt, shares of Deutsche Bank, Siemens and Bayer each fell about 4%, while Commerzbank dropped 3.7%. Automaker Volkswagen declined 2.5% and sportswear maker Adidas lost 1.6%.
In Madrid, Banco Santander fell 4.3%. BNP Paribas dropped 4% in Paris, while Dutch semiconductor equipment maker ASML declined 3.4% in Amsterdam. In London, Barclays fell 3.5% and HSBC lost 3%.
In Asia, Tokyo markets saw steep losses in the auto sector. Mazda plunged 9.3%, Nissan fell 7.5%, Suzuki dropped 7.2%, Toyota lost 6.1% and Honda declined 4%. Sony fell 6.3% and SoftBank slipped 1.3%.
In Seoul, automakers also suffered sharp declines, with Hyundai falling 11% and Kia dropping 10.6%. Shares of LG fell 12% and Samsung lost 8.9%.
Defense stocks, however, surged in South Korea. Hanwha Aerospace, a major defense manufacturer, climbed 19.8%, while LIG Nex1, which specializes in air defense systems, jumped 29.9%.