The Dow Jones Industrial Average dropped by 540 points, or 1.1%, as of 1:01 p.m. Eastern time, and the Nasdaq composite was 1.4% lower. The S&P 500 dropped 1.2% in afternoon trading after falling as much as 2.5% in the morning. Oil prices have surged due to concerns that the widening war with Iran may damage the economy more severely. The price for a barrel of Brent crude rose by 6.2%, up from close to $70 less than a week ago. Concerns are particularly high about the Strait of Hormuz off the coast of Iran, a crucial passageway where roughly a fifth of the world’s oil imports passes. The surge in oil prices will worsen inflation and put pressure on U.S. households and businesses by raising bills for gasoline and to ship products.