The Dow Jones Industrial Average and the broad-based S&P 500 index both fell 0.6 percent, while the tech-heavy Nasdaq Composite Index lost 0.7 percent.
Geopolitical unrest in the Middle East is driving up oil prices.
The Iran-backed Houthi movement took control of the strategically located city of Mocha on the Red Sea on Thursday and is now targeting the Bab al-Mandab Strait, an important shipping lane for global trade.
In addition, new data showed that Saudi Arabia produced 6.2 million barrels of oil a day in August, a drop of 23 percent compared with July, according to a report from the oil cartel OPEC.
Oil prices surged 7 percent. A barrel of North Sea oil costs just under $108, compared with $101 this morning.
