Oil prices surged, with Brent crude climbing above $109 a barrel. The rally was fueled by growing tensions in the Strait of Hormuz, a critical chokepoint for global energy shipments.
Stock markets struggled under the weight of the geopolitical uncertainty. Major indexes opened lower as investors weighed the risk of supply disruptions.
The Dow Jones Industrial Average fell sharply in morning trading. The S&P 500 and the Nasdaq Composite also posted losses.
Energy stocks were the lone bright spot, gaining on the spike in crude prices. Oil producers and related companies saw their shares rise.
Investors moved toward safe-haven assets, pushing gold prices higher. Bond yields slipped as traders sought refuge in government debt.
The broader market remained cautious, with trading volumes above average. Analysts pointed to concerns over potential retaliatory actions in the region.
Transportation and airline stocks suffered as higher fuel costs threatened margins. Consumer discretionary shares also declined on fears of slowing economic activity.
Economic data releases took a back seat to geopolitical headlines. Market participants now watch for diplomatic developments that could ease tensions.
