Iran War Intensifies, Sends Oil Near $120 and Wall Street Down
Key Takeaways
- Crude oil prices briefly spiked to nearly $120 per barrel
- Global markets, including Wall Street and major European indexes, fell sharply
- Iranian attacks spread across the Gulf, threatening regional oil production and shipping
Market reaction to Iran fighting
Global markets plunged as the Iran-related fighting intensified, sending oil sharply higher and Wall Street futures lower.
“Wall Street follows global markets lower as Iran war briefly pushes crude prices near $120 a barrel Wall Street follows global markets lower as Iran war briefly pushes crude prices near $120 a barrel Wall Street futures followed global markets lower early Monday and oil prices briefly spiked to nearly $120 per barrel as the Iran war intensified, threatening production and shipping in the Middle East”
Associated Press reported that "Wall Street futures opened lower Monday... with S&P, Nasdaq and Dow futures down more than 1%," noting the move followed a broader overnight slide.
The Washington Post said "oil prices climbed above $100 amid continuing hostilities," and OilPrice documented Brent trading "around $119/barrel" as markets reacted to the conflict.
Middle East oil price surge
Crude briefly spiked toward the $120 mark as analysts and officials warned of risks to Middle East production and shipping.
The Associated Press said "Crude briefly spiked toward $120 a barrel as fighting involving Iran intensified, threatening Middle East production and shipping."
OilPrice warned that rising strikes and threats could push oil much higher.
OilPrice said Tehran has warned oil could hit "$200 a barrel if attacks continue."
The Washington Post highlighted how those higher prices hit economies reliant on Middle Eastern oil.
Aviation market disruptions
The aviation sector was acutely affected: airline stocks plunged and flight disruptions surged.
“Democracy Dies in Darkness In this article By Mary Ilyushina Oil prices soared above $100 Global markets reacted sharply to the continuing hostilities, with steep losses first hitting Asian markets, where economies such as China rely heavily on oil imports from the Middle East”
AP noted U.S. carriers were hit, reporting that "U.S. airline shares (Delta, American, United) dropped more than 3% premarket."
OilPrice provided a wider picture of the aviation shock with examples of carrier share declines and extensive cancellations, noting "More than 37,000 Middle East flights have been canceled since Feb. 28."
The Washington Post linked rising oil to broader economic anxiety and political criticism of leadership over the fallout.
Market and political fallout
Political fallout in Washington and heightened investor fear were also evident.
OilPrice reported that U.S. officials were worried rising U.S.-Israel strikes on Iranian sites could trigger the energy-price spiral Washington is trying to avoid.
OilPrice also said a closed-door briefing failed to convince many lawmakers and that the White House planned to seek emergency funding amid partisan skepticism.
The Associated Press framed the market reaction to the intensifying fighting.
The Washington Post emphasized that continuing hostilities rattled markets and public sentiment.
Market stress indicators
Broader financial indicators confirmed elevated market stress, with Asian and European indices seeing steep declines and volatility and bond yields moving in response.
“NATO Intercepts Missile Over Turkey as Iranian Attacks Spread Across the Gulf NATO air defenses shot down a ballistic missile that crossed into Turkish airspace on Monday, the second such interception since the start of the Iran war and a stark reminder that the conflict is now reaching the borders of the Western military alliance”
The Associated Press reported that Japan’s Nikkei plunged over 5% and European markets fell 2–3%.
The Washington Post gave specifics, saying Stoxx Europe 600 fell more than 2 percent, London’s FTSE 100 dropped over 1.5 percent and Germany’s DAX declined more than 2.5 percent.
OilPrice noted rising risk measures and bond-market reactions, including a jump in the CBOE VIX and a rise in German Bund yields.