Dow drops 500 points to start shortened week as oil prices climb: Live updates

BREAKING: Dow drops 500 points to start the shortened week as oil prices climb to six-week highs amid the US-Iran war and rising US-Canada trade tensions.

The Dow fell 511 points on its very first day back from a long weekend.

Welcome to the shortened week, traders. You can see the mood on the floor here, and the culprit is oil. Brent hit ninety nine dollars a barrel, a six-week high, after the US and Iran traded strikes over the weekend. Tehran is quietly reminding everyone who controls the Strait of Hormuz, and every barrel that gets pricier drags Treasury yields up with it.

And there's a second front. Canada's retaliatory tariffs on twenty billion dollars of American goods kicked in today, and President Trump says Bombardier can't sell in the US unless Canada builds its products there.

Now it all lands on the Federal Reserve's desk. Traders are pricing a 60 percent chance of a rate hike next week, and inflation data drops Thursday and Friday. Ninety nine dollar oil has a way of making that decision for them.

This is Sara White, reporting for HIT.