The Dow closed 450 points down, while the S&P 500 dipped 1.7%. The tech-heavy Nasdaq fell 2.3%, plunging into correction territory, which happens when an index falls at least 10% below its most recent peak.

Oil prices have surged since the start of the conflict, reaching levels not seen since Russia’s invasion of Ukraine pushed up global oil prices in 2022 and 2023. At the end of day on Thursday, Brent crude oil, the global benchmark, was about $107 a barrel while US crude hit $93 a barrel. Average US gas prices at the pump reached $3.98 a gallon, according to AAA.

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Trump’s comments came as a new report estimates US inflation will average 4.2% this year, compared with an average of about 2.6% in 2025, according to the Organization for Economic and Cooperation and Development (OECD). The increase in inflation reverses what was expected to be strong growth for the global economy before the conflict began.

Inflation is expected to be 1.2% higher on average across the G20 countries. Much of the squeeze stems from higher oil prices, which can trickle down the supply chain. The OECD’s report noted the impact on the price of fertilizer, which is imported heavily from the region, could particularly affect prices.