NEW YORK — Stock markets tumbled on Monday amid renewed tensions in the Middle East following missile exchanges between Iran and Israel, traders and analysts said.
Major U.S. indexes opened lower as investors reacted to the latest escalation, with oil prices surging on concerns over potential supply disruptions. The Dow Jones Industrial Average fell more than 1 percent early in the session, while the S&P 500 and Nasdaq Composite also declined, according to market data.
Brent crude, the global benchmark, rose more than 2 percent to around $94 per barrel at one point, while West Texas Intermediate climbed similarly, market reports showed. The price gains reflected worries about stability in the region following Iranian missile launches and Israeli retaliatory strikes.
The moves came after Iran announced it had halted further strikes and Israel confirmed the end of its operations, but uncertainty persisted over the fragile ceasefire established in April. President Donald Trump urged both sides toward de-escalation, officials said.
"Markets are sensitive to any signs of prolonged disruption in energy supplies," one Wall Street strategist said, as reported by financial media. Energy stocks gained ground amid the oil rally, while sectors sensitive to higher fuel costs, including transportation and consumer discretionary, faced pressure.
Asian markets closed mostly lower overnight, with Japan's Nikkei 225 and other regional indexes retreating on the news. European shares also opened down as trading began. The renewed flare-up followed Israeli actions targeting Hezbollah in Beirut, prompting Iran's response.
The conflict has raised broader concerns about potential impacts on global energy flows through key routes like the Strait of Hormuz, though no major disruptions were immediately reported. Oil prices had eased in recent weeks amid the ceasefire but reversed course sharply.
Details on the full market impact remained fluid as trading continued. Analysts noted that previous episodes of Middle East tensions had led to volatility but often proved short-lived depending on the duration of hostilities.
As of Monday afternoon, U.S. markets showed some stabilization after initial losses, but trading remained cautious. No further immediate military developments were reported, and diplomatic efforts to shore up the ceasefire were ongoing. The extent of any longer-term economic effects was still being assessed.
