Conflict that began early Saturday has seen oil prices spike and stock futures rattled
Markets were roiling Monday morning following the United States' and Israel's attacks on Iran. In what President Trump has called a war, Iran has responded with strikes on a number of US allies in the Arabian Gulf as well as on Israel. With missiles and drones flying over the Strait of Hormuz, a chokepoint through which roughly 20 per cent of the world's LNG and 25 per cent of seaborne oil flows, energy prices have soard. Brent crude rose nine per cent to almost $79.19 per cent. Natural Gas futures also rose around six per cent, while futures for transportaiton and industrial fuels rose more than 14 per cent.
S&P 500 and Dow Jones Industrial Average futures each fell by about one per cent. Travel-related stocks took a particular hit. Global markets also started to show some volatility. The Nikkei 225 in Japan started its day down aroudn two per cent, regaining somewhat to close 1.4 per cent down, largely thanks to advances in defense-related industrial stocks. India's Sensex index fell 1.3 per cent. German, French, and British indices fell 1.9 per cent, 1.7 per cent, and one per cent respectively.
The Shanghai Composite index actually rose 0.5 per cent, thanks to oil company stocks rising up to the 10 per cent limit thanks to higher oil prices.
Gold rose 3.1 per cent to $5,408.10 (USD) per ounce as investors flooded into the safe haven asset. The US dollar also gained somewhat.
