Wall Street shares were headed lower on Monday after a U.S. strike against nuclear targets in Iran this weekend, the Associated Press reports. Futures for the S&P 500 were virtually unchanged, while Dow Jones Industrial Average futures slipped 0.1%, and Treasury yields held steady.
Oil prices spiked initially, fell and then regained roughly half as much. Brent crude, the international standard, rose 1.2% to hit $77.91 per barrel, while U.S. benchmark crude ticked up 1.3% to $74.79.
An Israeli attack against Iran on June 13 began the conflict that has spurred wild fluctuations in oil prices and shaken other markets. The U.S. attacks over the weekend on three Iranian sites raised the stakes and increased the probability of Iranian retaliation. They also could potentially disrupt shipping through the Strait of Hormuz, which provides passage for much of the world’s crude oil.
Iran, as a major oil producer, may be reluctant to close the waterway and impact transport of its own crude, mainly to China. Closing off the Strait of Hormuz would be technically challenging but could significantly disrupt transit, spike insurance rates and raise fears among shippers to move without U.S. Navy escorts.
