Oil Price Surge Sends Dow Tumbling Amid Iran Conflict
U.S. stocks opened lower on Monday as renewed fighting between the United States and Iran pushed crude prices higher and revived concerns about inflation and interest rates.
The Dow Jones Industrial Average slipped about 0.5%, while the S&P 500 declined 0.4% and the Nasdaq Composite fell 0.3%
The moves came as investors assessed the potential economic effects of another escalation in the Middle East.
Brent crude climbed back above $90 a barrel after U.S. forces targeted Iranian rocket launchers near the Strait of Hormuz.
Iran and its allies responded with strikes, raising concerns that further clashes could interfere with shipments through the critical oil route.
Higher energy costs also complicated the outlook for inflation.
Investors were simultaneously weighing expectations for Federal Reserve policy, with rising oil prices potentially adding pressure to interest rates.
The combination of geopolitical uncertainty, higher crude prices and shifting rate expectations could keep pressure on equities while increasing volatility across sectors.