Dow falls 500 points as oil jumps on fear Iran conflict set to flare up again
U.S. stocks fell on Monday as fresh developments in the Middle East pushed oil prices higher, reviving concerns over regional instability.
The Dow Jones Industrial Average dropped 565 points, or 1.1%. The S&P 500 fell 0.7%, while the Nasdaq Composite also declined 0.7%.
Market nerves were triggered after the United Arab Emirates said it had intercepted several missiles fired from Iran. It marked the first activation of the UAE’s missile alert system since the U.S.–Iran ceasefire began last month, reinforcing fears that tensions could re-escalate.
Oil prices surged on the news. U.S. West Texas Intermediate (WTI) crude futures climbed about 3% to trade above $105 a barrel, while global benchmark Brent rose roughly 5% to above $114 a barrel. Higher energy prices added to inflation concerns and weighed on risk assets.
Crude had already been moving higher earlier in the day amid conflicting reports around an alleged Iranian attack on a U.S. warship and Iranian media claims that a vessel was turned back from the Strait of Hormuz, keeping markets highly sensitive to headline risks tied to energy supply routes.
Source : Newsmaker.id
