Oil Price Surge Drags US Stock Market Lower Amid Iran Tensions

The US stock market fell on Monday as rising oil prices weighed on investor sentiment. The S&P 500 dropped 0.8%, while the Dow Jones Industrial Average declined 372 points, or 0.7%. The Nasdaq composite was down 1%.

Oil prices surged to $100.19 per barrel for Brent crude, following uncertainty over the war with Iran and its impact on tanker traffic through the Strait of Hormuz. President Donald Trump rejected an offer from Iran to reopen the strait and resume talks on its nuclear program.

The increase in oil prices has worsened inflation, pushing the average price for a gallon of regular gasoline to nearly $4.48 from $3.13 a year ago. Treasury yields also rose, with the 10-year yield jumping to 5.26% and the 30-year yield reaching 5.58%.

Airlines and other companies with high fuel costs were among those that suffered losses, while gold miners declined as the price of gold fell 3.9%. Nvidia was a notable exception, rising 2% after announcing a plan to send up to $150 billion to its shareholders in a stock buyback program.