By Wall Street Journal
Oil prices surged after U.S. and Israeli strikes on Iran showed signs of sparking a widening conflict across the Middle East.
The U.S. dollar and Swiss franc rallied amid a broad investor flight to safety. Gold futures rose around 1.5%.
Stocks fell sharply at the open, only to quickly pare losses on Monday morning. The Dow industrials and S&P 500 traded near flat, while the Nasdaq composite edged higher.
Futures for Brent crude oil, the global energy benchmark, rose about 7%, fueled by fears of a protracted closure of the key Strait of Hormuz corridor and attacks on Mideast energy infrastructure. European gas futures surged, getting an extra boost after the world’s largest liquefied natural-gas producer halted output.
European and Asian stocks largely sold off, with airlines posting particularly sharp losses. However, shares in oil, shipping and defense companies rallied, with Lockheed Martin and RTX both jumping.
U.S. Treasury yields pushed back above 4%. Concerns that a sustained spike in oil prices would boost inflation appeared to outweigh the perceived role of Treasurys as a haven asset.
