U.S. stocks finished nearly unchanged Monday in the first trading session following the weekend’s joint U.S.-Israeli strikes on Iran.
The Dow Jones Industrial Average slipped 73 points, or 0.15%. The S&P 500 edged up 0.04%, while the Nasdaq gained 0.3%. All three major indexes recovered from sharper losses earlier in the day as investors weighed the escalating conflict.
President Donald Trump announced “major combat operations” against Iran on Saturday. The strikes prompted Iranian missile and drone attacks targeting Israel, U.S. military bases and Gulf nations.
Iranian state television also confirmed the death of Supreme Leader Ali Khamenei in the airstrikes.
Oil Prices Surge
Oil markets reacted more dramatically than equities. Brent crude jumped more than 7% amid fears of disruption in the Strait of Hormuz, a critical shipping lane that carries roughly one-fifth of the world’s oil supply. A prolonged conflict could drive up fuel and transportation costs globally.
The CBOE Volatility Index (VIX), often called Wall Street’s “fear gauge,” climbed over 7%, signaling heightened investor anxiety.
Global Markets Slide
International markets saw steeper declines. Europe’s STOXX 600 index fell 1.6%, Japan’s Nikkei 225 dropped 1.3%, and South Korea’s KOSPI slid 1%.
Despite the turbulence, Angelo Kourkafas, senior global strategist at Edward Jones, suggested markets may stabilize.
“Geopolitical flare-ups can create short-term volatility, but recent episodes have produced limited and short-lived market impacts,” he told ABC News.
Conflict May Be Prolonged
Iran signaled it is prepared for a sustained fight. Ali Larijani, secretary of Iran’s Supreme National Security Council, said Tehran has prepared for a “long war.”
Meanwhile, Gen. Dan Caine, chairman of the Joint Chiefs of Staff, said military objectives “will take some time to achieve.”
With both sides bracing for an extended conflict, investors appear cautious — but not panicked — as geopolitical tensions ripple through global markets.
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