NEW YORK — Global financial markets tumbled on Monday as escalating military exchanges between Israel and Iran heightened geopolitical risks, sending oil prices sharply higher, market participants said.
U.S. stock futures declined in early trading, with the Dow Jones Industrial Average, S&P 500 and Nasdaq all showing losses amid uncertainty following Iranian missile strikes on Israel and subsequent Israeli airstrikes on Iranian targets. Brent crude futures rose more than 4 percent to around $97 per barrel, while West Texas Intermediate gained similarly, according to trading data.
The moves came hours after the latest flare-up in the Middle East, which threatened a fragile ceasefire in place since April. Investors shifted toward safer assets, with gold prices also advancing, analysts reported.
"The situation is still evolving, and markets are reacting to the potential for broader disruption," one trader familiar with the flows said.
The escalation followed a stronger-than-expected U.S. jobs report for May, which had already contributed to volatility by raising expectations for Federal Reserve interest rate decisions. Technology and growth stocks were among the hardest hit sectors in recent sessions.
Oil prices climbed on concerns over possible supply disruptions in the region, though no immediate impact on major shipping routes was reported. Energy shares provided some support to broader indexes, while financial and consumer stocks lagged.
The developments come as President Donald Trump urged both sides to halt further attacks and return to negotiations. No immediate comments were available from major central banks on the market moves.
As of Monday afternoon, trading remained cautious with light volume. Asian markets earlier posted mixed results, with some indexes in the region declining on spillover concerns. European markets were also lower at the open.
Details on the full extent of market losses remained subject to the opening bell and further news flow. Analysts continued to monitor oil prices and any statements from officials in Washington, Tehran and Jerusalem for additional signals.
