US stocks fall, oil prices jump on Middle East tensions

Wall Street equities tumbled while Brent oil prices finished above $90 a barrel for the first time since late October as markets took stock of rising political tensions in the Middle East.

After an upbeat morning that saw US stocks rebound, major indices plunged into the red in afternoon trading, finishing sharply lower.

The Dow Jones Industrial Average ended down 1.4 percent at 38,596.98, a drop of about 825 points from its session peak.

That came amid another jump in crude prices, in a market that has found itself "very nervous" about the Middle East, said John Kilduff of Again Capital.

"The market continues to sort out whether or not there is going to be an Iranian response to the attack by Israel" earlier this week in Damascus, Kilduff said.

President Joe Biden meanwhile escalated his criticism of Israel's prosecution of its war on Gaza on Thursday, expressing dismay over civilian casualties in a conversation with Israeli Prime Minister Benjamin Netanyahu.

White House National Security Council spokesman John Kirby said the two leaders also discussed a "very public and very viable, real threat by Iran to Israel's security".

Israeli media reported that several Israeli embassies have been evacuated following a situation assessment.