Oil Prices Soar as Houthi Attacks Spark Global Market Turmoil
New York stocks opened lower on September 8th after the Labor Day holiday due to concerns over Middle East-driven crude supply disruptions. The Dow Jones Industrial Average closed down 628.03 points (1.18%) at 52,786.22, the S&P 500 fell 45.08 points (0.58%) to 7,673.52, and the Nasdaq Composite dropped 85.578 points (0.32%) to 26,421.413.
The main drag on markets was a sharp spike in international oil prices following news that Iran-backed Houthi rebels in Yemen had bombed Saudi Arabian oil facilities along the Red Sea coast. This heightened tensions around the Strait of Hormuz and added to concerns over maritime shipping disruptions.
November-delivery Brent crude futures settled up $0.92 (0.95%) at $97.92 per barrel, with intraday prices surging to $99.46 per barrel - the highest level since July 24. October-delivery West Texas Intermediate (WTI) crude futures also rose $1.55 (1.69%) to settle at $93.03 per barrel.
Despite the energy sector's resilience, inflation concerns stemming from the oil price surge and the possibility of further interest rate hikes dampened investor sentiment. Rising long-term Treasury yields added pressure across equities, causing most sectors to decline except for energy, utilities, and real estate.