Stocks dropped sharply on Monday as oil prices soared past $100 per barrel, fueled by the ongoing U.S.-Israeli military conflict with Iran, reports Baltimore Chronicle via Reuters. Global markets reacted immediately, reflecting fears of a sustained disruption in the Strait of Hormuz, a critical passage for approximately 20% of the world’s oil supply.
The Dow Jones Industrial Average declined by 430 points, equivalent to 0.9%, while the S&P 500 fell by the same percentage. The Nasdaq, dominated by technology companies, slipped 1%. European and Asian markets also experienced significant losses. Tokyo’s Nikkei 225 index plunged 5.2%, and the pan-European STOXX 600 index decreased by 1.7%, underscoring the worldwide financial impact of the crisis.
Crude oil prices exceeded $100 per barrel, marking a dramatic 54% increase since late February. Overnight trading saw prices approaching nearly $120 per barrel before easing slightly following reports that Group of Seven (G7) finance ministers were planning discussions on a potential coordinated release from strategic petroleum reserves.
The U.S. gasoline market responded immediately, with the average price of a gallon rising to $3.47 on Monday from $2.99 just a week earlier, according to AAA. Market analysts cite fears of long-term supply disruptions, particularly through the Strait of Hormuz, as a primary driver of this volatility.
Tensions escalated after U.S.-Israeli operations targeted Iran, culminating in the death of Supreme Leader Ayatollah Ali Khamenei on February 28 in Tehran. On Sunday, Mojtaba Khamenei, his son, was appointed as the new Supreme Leader, a move that has further heightened geopolitical uncertainty.
In a statement on social media Sunday night, former President Donald Trump addressed the surge in oil prices, describing the increase as “a very small price to pay for U.S.A., and World, Safety and Peace” and asserting that oil prices would drop rapidly once the Iran nuclear threat was neutralized.
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