Tensions Spark Global Market Turmoil as Oil Prices Surge and US-Iran Conflict Escalates
US stocks closed lower for the third consecutive trading day on Tuesday, as geopolitical tensions continued to dominate market sentiment. The S&P 500 fell 0.71% to 7,631.47 points, while the Nasdaq dropped 1.03% to 26,099.774 points. The Dow Jones Industrial Average declined 0.79% to 52,766.88 points.
The US military struck targets of the Islamic Revolutionary Guard Corps (IRGC) inside Iran, while Iran fired ballistic missiles at a US military base in Jordan. Oil prices surged violently in response, with WTI crude oil futures closing up 5.20% at $90.22 per barrel and Brent crude oil futures rising 4.60% to $94.65 per barrel.
The yield on the 10-year US Treasury note rose to around 4.80%, hitting a 19-month high. Fed Governor Barr stated that if inflation fails to cool sufficiently, the Fed should raise interest rates decisively.