Wall Street followed global markets lower and oil prices briefly spiked to nearly $120 per barrel as the Iran war intensified, threatening production and shipping in the Middle East.

Oil prices surged to their highest levels since 2023 due to the Iran war, coinciding with a weak update on the US labour market that highlighted the economy's precarious position.

The Dow Jones Industrial Average plunged as many as 945 points before finishing with a loss of 453, or 0.9%, and the Nasdaq composite sank 1.6%.