The stock market experienced significant losses as tensions rose between Israel and Iran, leading to a drop of more than 700 points in the Dow index. Oil prices surged sharply, with analysts predicting further increases amidst fears of prolonged conflict. The escalation has raised concerns about the impact on global markets and the economy, with defense stocks gaining interest and the potential for inflationary pressures intensifying. As both nations engage in strikes, investors are bracing for potential disruptions in oil supply, which could affect consumer prices significantly.