04:59 PM EST, 03/05/2026 (MT Newswires) -- The Dow Jones Industrial Average fell the most since late February on Thursday, while US crude prices briefly crossed $80 per barrel amid an escalating military conflict in the Middle East.

The Dow closed 1.6% lower at 47,954.7, marking its steepest one-day decline since Feb. 23. The S&P 500 declined 0.6% to 6,830.7, while the Nasdaq Composite lost 0.3% to 22,749. Most sectors were in the red, led by a 2.4% slump in consumer staples, while energy saw the biggest gain.

The US-Israel war with Iran is now into its sixth day, with the crucial Strait of Hormuz having been effectively shut by Tehran. Iran has struck the United Arab Emirates, Bahrain, Oman, Kuwait, Iraq and Saudi Arabia, CNBC reported.

Iran claimed to have hit an American oil tanker in the northern parts of the Persian Gulf with a missile, Tasnim News Agency reported Thursday. The US military sank an Iranian warship in the Indian Ocean with a torpedo, BBC reported, citing Secretary of Defense Pete Hegseth.

Despite continued US and Israeli strikes, Iran has not asked for a ceasefire, NBC News reported, citing Iranian Foreign Minister Abbas Araghchi, who refused any negotiations with Washington.

West Texas Intermediate crude oil was last up 6.2% at $79.25 a barrel, having traded at as high as $82.14 during Thursday's session.

"While the US imports little energy from the Middle East, it faces higher domestic oil, gas and electricity prices following the military action against Iran," ING Bank said in a report. "This will delay inflation returning to (the Federal Reserve's) 2% (target)."

The national average for gasoline prices in the US jumped nearly 27 cents to $3.25 a gallon since last week, bringing the tally to levels last seen in April 2025, AAA, a travel organization that tracks fuel prices in the country, said on Thursday.

"In terms of growth, higher prices may be a boost for the US energy sector, but higher energy costs will squeeze household spending power at a time when consumer confidence is already weak due to anxiety over tariffs and job security," ING said.

If the conflict drags on, triple-digit oil prices become "a very real possibility," Aditya Saraswat, head of Middle East and North Africa research at Rystad Energy, said in a note e-mailed to MT Newswires.

US Treasury yields were higher, with the 10-year rate last up 2.9 basis points at 4.13% and the two-year rate rising 2.7 basis points to 3.58%.

In economic news, US job cuts declined in February following a surge at the start of the year, but downsizing plans could pick back up due to the US-Iran war, Challenger Gray & Christmas said.

Separately, data from the Department of Labor showed that weekly applications for unemployment insurance in the US held steady sequentially, while continuing claims increased.

"Fed officials have recently characterized the labor market as having shown signs of stabilization," Jefferies said in a note. "Contrary to our expectations coming into the year, we have to agree based on the recent data."

Official data are expected to show Friday that the US economy added 55,000 nonfarm jobs last month, compared with a 130,000 gain reported for January, according to a Bloomberg-compiled survey. The unemployment rate is seen unchanged at 4.3%.

In company news, Victoria's Secret (VSCO) projected full-year revenue above expectations, while the clothing and lingerie retailer said it would raise prices and run more-targeted promotions as part of measures to mitigate the impact of tariffs. The company's shares slumped 12%.

Trade Desk ( TTD ) shares surged 18%, the top gainer on the S&P 500. The ad-buying software maker and OpenAI had early discussions to form a collaboration to support the ChatGPT parent sell its ads, The Information reported Wednesday, citing unnamed sources.

Burlington Stores ( BURL ) reported higher-than-expected fiscal fourth-quarter results Thursday, while the off-price retailer sees potential upside to its full-year comparable sales outlook that it said is already "slightly ahead" of its typical model. The company's shares jumped 6.9%.

Gold was down 1.2% at $5,075.40 per troy ounce, while silver dropped 1.5% to $81.91 per ounce.