The Dow Jones Industrial Average plummeted more than 650 points in early trading on Friday as the Iran war<\/a> continued to spike oil prices<\/a>.<\/p>\n The Dow fell 657 points, or 1.3%, while the S&P 500 dropped 1.2%. The tech-heavy Nasdaq declined 1%.<\/p>\n In a post on social media on Friday morning, President Donald Trump appeared to rule out a compromise with Iran.<\/p>\n Trump said there would be “no deal with Iran except UNCONDITIONAL SURRENDER!”<\/p>\n Oil prices soared as traders feared a prolonged blockade of the Strait of Hormuz<\/a>, a trading route that facilitates the transport of about one-fifth of global oil supply.<\/p>\n Smoke rises from the site of airstrikes in a central area of the Iranian capital Tehran, March 6, 2026.<\/span><\/span><\/span><\/p>\n Atta Kenare\/AFP via Getty Images<\/span><\/p>\n<\/div>\n<\/figcaption><\/figure>\n<\/div>\n<\/div>\n<\/div>\n U.S. crude oil prices topped $88 on Friday, marking a staggering 35% increase from a week earlier.<\/p>\n The stock selloff on Friday extended losses<\/a> from a day earlier, when the Dow closed down 785 points.<\/p>\n Alongside fallout from the Middle East conflict, a jobs report on Friday showed<\/a> the U.S. economy unexpectedly lost jobs in February, marking a reversal of fortunes for the labor market.<\/p>\n The unemployment rate ticked up from 4.3% in January to 4.4% in February, the BLS said. Unemployment remains low by historical standards.<\/p>\n The Iran war threatens to slow U.S. economic growth since oil-driven price increases could weigh on consumers and businesses, analysts previously told<\/a> ABC News.<\/p>\n The potential combination of higher inflation and slower growth could also pose a challenge for the Fed, putting pressure on both sides of its dual mandate to manage prices and maintain maximum employment.<\/p>\n The central bank held interest rates steady<\/a> at its most recent meeting in January, ending a string of three consecutive quarter-point rate cuts.<\/p>\n![\"Center](\"https:\/\/i.abcnewsfe.com\/a\/12a91a4f-1983-4eef-8133-51be79466e43\/iran-3-gty-gmh-260306_1772805238169_hpMain.jpg?w=375 "\\"Center")
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