05:28 PM EDT, 03/12/2026 (MT Newswires) -- US equities slid Thursday to their lowest close for the year, while Brent crude topped $100 a barrel as an intensifying Middle East conflict stirred fears of prolonged oil supply disruptions.

The Nasdaq Composite shed 1.8% to settle at 22,312, while the Dow Jones Industrial Average fell 1.6% to 46,677.9. The S&P 500 lost 1.5% to 6,672.6. Most sectors ended in the red, led by industrials, while energy saw the biggest gain.

Brent was last up 9.8% at $101.03 a barrel, while West Texas Intermediate crude oil jumped 10% to $95.98 a barrel.

Iran's new Supreme Leader Mojtaba Khamenei reportedly said the Strait of Hormuz -- the world's most important chokepoint for crude flows -- should remain shut. Mojtaba is the son of the former leader, Ayatollah Ali Khamenei, who was killed in the US and Israel strikes.

Mojtaba sought the immediate closure of US military bases in the Middle East, saying those bases will be attacked, according to media reports. Iran's Islamic Revolutionary Guard Corps said it will set the region's oil and gas infrastructure on fire if Iran's energy assets and ports are attacked, CNN reported.

Israel struck Beirut's southern suburbs on Thursday night, CNN reported. On Wednesday, two drones fell near Dubai's main airport, while Bahrain evacuated some planes, Reuters reported.

US Energy Secretary Chris Wright told CNBC Thursday that America was "not ready" to escort oil tankers through the strait.

"There are no signs of de-escalation in the Persian Gulf, so there is no end in sight to the disruptions to oil flows through the Strait of Hormuz," ING Bank said in a report.

The International Energy Agency slashed its oil output growth forecast for this year, saying the ongoing conflict in the Middle East is creating the largest supply disruption in the history of the global crude market.

On Wednesday, the agency agreed to release a record volume of 400 million barrels of oil reserves amid concerns around supply disruptions.

"There are concerns about the speed at which this oil will reach the market and whether it will be enough to tie up the market until we see oil flowing through the Strait of Hormuz again," ING said. "The only way to see oil prices trade lower on a sustained basis is by getting oil flowing through the Strait of Hormuz. Failing to do so means that the market highs are still ahead of us."

US Treasury yields were higher, with the 10-year rate last up 3.9 basis points at 4.27% and the two-year rate adding nine basis points to 3.75%.

Lindsey Piegza, chief economist at Stifel, said the latest inflation report didn't reflect recent energy price increases.

"For the (Federal Reserve), given the already elevated nature of inflation coupled with more recent upside risks stemming from a potentially sustained global energy price shock, despite a lackluster February employment report, the (Federal Open Market Committee) will find it difficult to justify any further policy adjustment at this juncture," she said.

The Fed leaving its benchmark lending rate unchanged next week is almost certain, according to the CME FedWatch tool.

In economic news, weekly applications and continuing claims for unemployment insurance in the US fell sequentially, government data showed.

"It is unlikely that the fallout from the conflict in Iran and the resultant increase in energy prices will lead to an increase in layoffs, but this remains an area to watch," Jefferies said in a note. "More likely, the increase in uncertainty will lead to lower hiring rather than outright layoffs."

US housing starts increased in January to the highest level in 11 months, driven by as a surge in multi-family projects, delayed government data showed.

"The positive homebuilding momentum that emerged late in 2025 carried into the start of 2026, though the January report points to a more nuanced backdrop," Admir Kolaj, economist at TD Economics, said in a report.

The US trade deficit narrowed sharply in January as exports hit an all-time high and imports fell, official data showed.

In company news, Dollar General ( DG ) posted better-than-expected fiscal fourth-quarter results, though the discount retailer's full-year same-store sales growth is forecast to slow on an annual basis. The company's shares slumped 6.1%.

Dow (DOW) was among the top gainers on the S&P 500, up 9.3%, as Citigroup upgraded the stock to buy from neutral and raised its price target to $40 from $28.

Gold was last down 1.8% at $5,085.50 per troy ounce, while silver fell 0.4% to $83.93 per ounce.