US Strike on Iranian Rocket Launchers Sends Oil Prices Soaring
The US military's strike on Iranian rocket launchers in the Strait of Hormuz has sent oil prices soaring and US stocks plummeting. Brent crude rose 2.5% to $91.10 per barrel, while US benchmark crude oil jumped 3.6% to $86.40 per barrel.
The S&P 500 fell 0.3%, the Dow Jones Industrial Average dropped 282 points or 0.5%, and the Nasdaq slid 0.1%. The yield on the 10-year Treasury rose to 4.75%, around the level seen two weeks ago when the Trump administration announced it would intervene in the bond market.
Stephen Innes of SPI Asset Management noted, 'The Middle East had finally gone quiet enough for oil traders to start sanding some of the war premium out of crude... Then Sunday arrived, with a reminder that quiet in the Strait of Hormuz is not the same as peace.'