Oil prices surged toward $100 a barrel Monday after renewed clashes in the Middle East rattled global markets. Futures for West Texas Intermediate crude rose over 3% during early trading, approaching the symbolic triple-digit mark for the first time in months. The escalation raised concerns about supply disruptions from one of the world’s most volatile regions.
Stock futures pointed to a mixed open on Wall Street. Dow Jones Industrial Average futures edged higher, while S&P 500 and Nasdaq-100 futures moved slightly lower. The cautious start followed a historic session last week when all three major indexes closed at fresh record highs.
Investors weighed the impact of higher energy costs on corporate profits and consumer spending. Rising oil prices typically squeeze margins for transportation and manufacturing sectors. Airlines and shipping companies saw their shares decline in premarket trading as fuel cost concerns weighed.
The broader market showed resilience despite the geopolitical jolt. Technology stocks, which led the recent rally, gave back some gains as traders locked in profits. Analysts noted that the record run had left valuations stretched, making markets more vulnerable to sudden shocks.
Treasury yields edged higher as investors anticipated potential inflationary pressures from rising oil prices. The 10-year yield climbed to 4.35%, reflecting expectations that the Federal Reserve might maintain higher interest rates for longer. Bond traders adjusted positions in response to the shifting geopolitical landscape.
Safe-haven assets attracted buyers as uncertainty increased. Gold prices rose 1.2% as investors sought shelter from volatility. The dollar also strengthened against major currencies, adding pressure on emerging market stocks and commodities priced in the greenback.
Energy stocks led gains in the broader market. Exxon Mobil and Chevron both advanced over 2% in premarket trading as oil prices climbed. Drilling and exploration companies also benefited from the jump in crude, with the sector outperforming other industries at the open.
Investors remained focused on any diplomatic developments that could de-escalate tensions. The situation in the Middle East remained fluid, with no immediate signs of a ceasefire. Markets will continue to monitor headlines for clues on how long oil prices might stay elevated.
