U.S. stocks fell on Monday as fears of a widening conflict in the Middle East took hold, driving oil prices higher.
The Dow Jones Industrial Average dropped 500 points, and other major indexes opened in the red in the first Wall Street activity since President Trump ordered military strikes on Iran.
U.S. crude prices shot up 7% to about $72 a barrel.
The bombardment of Iran and retaliatory strikes are raising fears that oil supply will be restricted, particularly if tanker traffic through the Strait of Hormuz — a vital artery — is severely limited.
Trader John Bishop works on the …
more >
Gold, which is viewed as a safe-haven asset in times of trouble, jumped by 2% to about $5,370 per ounce on Monday.
Mr. Trump ordered joint U.S.-Israeli strikes on Iran early Saturday. He wants to stop Tehran from getting a nuclear weapon and supporting terror groups in the region.
Tehran retaliated Sunday after the military strikes killed Supreme Leader Ayatollah Ali Khamenei and other top officials, raising fears of a widening and prolonged conflict. Iranian strikes have killed four American service members.
Mr. Trump told The New York Times that U.S. bombardments could last “four or five weeks.”
The president is back in Washington after monitoring the attacks from his Florida estate over the weekend. He kept a low public profile but updated the nation on the military strikes through media interviews and two lengthy videos posted on social media.
