Rising energy costs and geopolitical instability pressured major U.S. indices, with the Dow falling 0.8% as Brent crude hit $101.21 and diesel prices reached record highs.
Brent crude topped $100 per barrel due to Middle East violence, pushing prices sharply higher.
Light sweet crude rose 3.6% to $96.40, its highest close since May, driven by supply concerns.
Retail gasoline prices rose quickly, with the national average up 3.8% since Labor Day weekend.
Diesel fuel reached an all-time high, up 66.6% year-over-year, hurting truckers and farmers.
The Dow Jones Industrial Average fell 405 points as higher oil prices pressured stocks.
The S&P 500 slipped 0.5% for its third straight loss, though still only 2.3% below its all-time high.
The Nasdaq Composite fell 0.6% as rising energy costs and geopolitical tensions weighed on tech stocks.
Energy stocks were the only S&P 500 sector to rise, gaining 1% amid the surge in oil prices.
Apple shares slipped despite the new iPhone launch as broad market weakness from oil-driven turmoil weighed on the stock.
Global oil prices surged as Brent crude breached $100 per barrel amid escalating military tensions in the Middle East. The rally in energy costs weighed heavily on broader equity markets, causing the Dow to drop 405 points and the S&P 500 to record its third consecutive decline.
Prices are surging due to increased military conflict in the Middle East, including attacks on Iranian oil infrastructure and missile exchanges, which have severely disrupted shipments through the Strait of Hormuz.