Oil Prices Soar, Stocks Tumble Amid Escalating Israel-Iran Crisis
Global oil prices surged sharply while stock markets slid on Monday as tensions between Israel and Iran intensified, rattling investors and sparking a flight to safer assets.
West Texas Intermediate (WTI) crude jumped by 4.3% to $74.84 per barrel, while Brent crude rose 4.4% to $76.45.
The surge reflects mounting concerns that the ongoing conflict could disrupt oil supply routes, especially through the strategic Strait of Hormuz.
The crisis, which escalated after Israeli airstrikes targeted Iranian military and nuclear infrastructure over the weekend, has raised fears of a broader regional confrontation.
In response, tanker shipping rates for routes from the Middle East to Japan and East Africa spiked by more than 20%, signaling market anxiety over potential supply chain disruptions.
On the equities front, major U.S. indexes fell sharply. The S&P 500 declined by 0.8%, the Dow Jones Industrial Average dropped nearly 299 points (-0.7%), and the tech-heavy Nasdaq Composite slid by 0.9%. European stock futures also pointed lower, reflecting global investor caution.
Safe-haven assets gained traction. U.S. 10-year Treasury yields fell to around 4.38% as bond prices rose, while gold edged up by 0.3% amid the risk-off sentiment.
Energy stocks outperformed the broader market, with oil giants like Chevron, Valero, and Occidental posting gains in line with the rising crude prices.
However, airline stocks took a hit due to rising fuel costs and concerns over flight route disruptions. United Airlines and American Airlines both declined by 5%, while Delta Air Lines fell by 4%.
Solar energy stocks were also under pressure, with Enphase Energy plunging 24% and First Solar dropping 17.9%, driven by market volatility and investor pullback from growth sectors.
The geopolitical jitters were further amplified by U.S. President, Donald Trump’s decision to leave the G7 summit early to monitor the crisis. He urged U.S. citizens to evacuate Tehran and posted on social media calling for Iran’s “unconditional surrender,” a move that alarmed markets and diplomats alike.
Analysts say the risk of further escalation could push oil prices above $100 per barrel if critical shipping lanes or infrastructure are attacked.
Investors are also closely watching central banks for any signals of intervention or policy adjustments as volatility intensifies.
The crisis has cast a shadow over global markets, with traders bracing for continued instability and seeking clues from diplomatic channels, defense briefings, and upcoming economic data releases.
As the world watches, markets remain on edge, caught between geopolitical turmoil and economic uncertainty.
