Dow Jones tumbles 800 points amid renewed concerns about US inflation

US stock indices declined during Thursday’s trading amid concerns about the impact of the war in the Middle East on energy prices, and the potential return of inflationary pressures in the United States.

Richmond Federal Reserve President Tom Barkin said that rising oil prices due to the war in the Middle East could intensify inflationary pressures, but the Fed’s assessment of the crisis will depend on the extent of its impact on the US economy.

Former Federal Reserve Chair Janet Yellen also warned that the war against Iran could complicate the Fed’s task in the coming period.

With the military conflict between the United States and Iran continuing and the subsequent closure of the Strait of Hormuz, oil and natural gas prices have surged, along with maritime insurance and shipping costs.

However, the White House said through officials that the administration of US President Donald Trump is considering a plan to deploy the US Navy to secure oil tankers passing through the Strait of Hormuz.

In trading, the Dow Jones Industrial Average fell by 1.7% (about 790 points) to 47,949 as of 16:57 GMT. The broader S&P 500 index declined by 0.6% (about 44 points) to 6,825, while the Nasdaq Composite slipped by 0.3% (about 70 points) to 22,737.