ISTANBUL

US stocks closed mostly lower Tuesday after a highly volatile trading session driven by sharp swings in oil prices as investors reacted to rapidly changing developments surrounding the war with Iran.

The Dow fell 0.07%, or 34.29 points, to 47,706.51; the S&P 500 was down 0.21%, or 14.51 points, to 6,781.48.

On the other hand, the Nasdaq Composite rose 0.01%, or 1.16 points, to 22,697.10.

The Volatility Index (VIX), also known as the “fear index,” fell 2.24% to 24.93 as markets stabilized after earlier turbulence.

Markets swung sharply as oil prices posted one of their most dramatic intraday reversals in recent years.

International benchmark Brent crude briefly surged above $100 per barrel earlier in the day amid fears of supply disruptions linked to the Iran war and potential risks to shipping through the Strait of Hormuz, a key route for one-fifth of global oil supply.

But prices later plunged as geopolitical concerns eased, as US President Donald Trump signaled Monday that the Iran war could be over “very soon.”

Brent crude futures fell more than 8% to around $89 per barrel, while US benchmark West Texas Intermediate (WTI) dropped nearly 7% to about $87 per barrel, after both benchmarks traded near $119 overnight, the highest since Russia’s invasion of Ukraine in 2022.

And US Energy Secretary Chris Wright said Tuesday that the US Navy “successfully escorted an oil tanker through the Strait of Hormuz,” crediting Trump with maintaining global energy stability during military operations against Iran.

In a post on the US social media platform X, Wright said the navy ensured oil continued flowing to global markets by guiding the tanker through the strategic waterway. The post was deleted without explanation.

Iran denied that claim, saying no American ship would approach the region during the conflict.

“No American ship will dare approach the Sea of Oman, the Persian Gulf, or the Strait of Hormuz during the war,” Revolutionary Guards spokesman Sardar Naini said in remarks carried by the IRIB state broadcaster.

The sharp oil price reversal helped ease inflation fears and supported risk appetite across equity markets.

Separately, G7 finance ministers signaled their readiness to stabilize global energy markets, saying they stand ready to take measures such as releasing crude stockpiles if needed to address supply disruptions caused by the conflict.

On the data side, existing home sales in the US climbed 1.7% month-on-month to a seasonally adjusted annual rate of 4.09 million units in February, exceeding expectations.