U.S. markets fell sharply on Friday, with the Dow Jones Industrial Average dropping into correction territory amid rising geopolitical tensions and energy supply concerns.

The S&P 500 and Nasdaq Composite also declined, extending recent weekly losses across major indices.

Oil prices surged, with Brent crude topping $110 per barrel following disruptions linked to the Strait of Hormuz, intensifying fears about global energy supplies.

Market sentiment was further pressured by uncertainty over U.S. policy toward Iran, including comments from Donald Trump about delaying potential actions and ongoing diplomatic ambiguity, CNBC has reported.

Investors remain cautious as the conflict’s outcome and its impact on oil supply and inflation continue to drive volatility.