Stocks tumbled Thursday as crude oil surged above $100 a barrel on escalating Middle East tensions and disappointing results hammered Tesla and Alphabet, CNBC reported.

The Dow Jones Industrial Average fell 437 points, or 0.8%, while the S&P 500 lost 0.8%. The tech-heavy Nasdaq Composite sank 1.5%.

Brent crude jumped more than 6% to top $100 a barrel, while U.S. West Texas Intermediate crude climbed 5% above $91 — their highest levels since the U.S. and Iran agreed last month to end their war.

Oil surged after Iran-backed Houthi militants claimed attacks on two Saudi tankers in the Red Sea, raising fears that the conflict could spread and disrupt global energy supplies.

President Donald Trump further rattled markets by threatening to destroy an Iranian bridge or power plant every time Tehran attacks a ship in the Strait of Hormuz.

Treasury yields rose alongside oil prices, with the benchmark 10-year yield reaching its highest level since January 2025 as investors worried that higher energy costs could revive inflation and trigger further interest-rate hikes.

RBC Capital Markets warned that Brent could surpass the 2022 high of $128 a barrel — and potentially approach the 2008 peak of $146 — if the conflict erupts into a full regional war.

Alphabet shares dropped 5% after the Google parent raised its projected 2026 capital spending to as much as $205 billion to meet booming artificial intelligence demand.

Tesla plunged more than 10% after reporting a sharp second-quarter earnings miss as operating expenses grew faster than revenue.