US equity-index futures fell and crude oil futures jumped as the escalating war in the Middle East jolted global markets. Gold futures rose 2.14% at one time.
Contracts for the S&P 500 Index dropped almost 1% and those for the Nasdaq 100 fell 1.27% at the open. Brent crude oil surged 12.19% to $82.11 a barrel at the open.
Shaken by fresh anxieties over artificial intelligence and potential cracks in credit, all while trading at historically high valuations, stock markets now must contend with a spiraling military action in Iran and the broader region that threatens to destabilize global shipping and limit travel. The impact on oil and inflation is a paramount concern in markets that last month saw US stocks post their worst drop since April.
Analysts expect oil prices to remain elevated over the coming days with conflict escalating in the Middle East, as they assess the impact to supplies, especially flows through the Strait of Hormuz, a conduit for more than 20% of global oil.
Attacks have damaged tankers, and many ship owners, oil majors and trading houses suspended crude oil, fuel and liquefied natural gas shipments via the Strait of Hormuz.
Gold prices rose on Monday after the U.S. and Israel launched major strikes on Iran, killing Supreme Leader Ayatollah Ali Khamenei, escalating geopolitical tensions and deepening global economic uncertainty.
The latest rally builds on a 64% surge in 2025, driven by strong central bank buying, robust inflows into exchange-traded funds and expectations of U.S. monetary policy easing.
"Gold is perhaps the finest barometer to reflect global uncertainty and, to mix metaphors, the mercury is rising. We should expect gold to be repriced higher to fresh records as we enter a whole new era of geopolitical uncertainty," said independent analyst Ross Norman.
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