Source: Fortune
Summary
US stock futures fell on Sunday evening as investors reacted to the US-Israeli bombardment of Iran over the weekend. The Dow Jones industrial average futures tumbled 482 points, or 0.97%, while S&P 500 futures were down 0.85% and Nasdaq futures sank 0.88%. Oil prices surged, with US oil futures up 7.25% to $71.88 a barrel and Brent crude gaining 8.1% to $78.77. The conflict has raised concerns about the potential closure of the Strait of Hormuz, a major oil shipping route. Analysts have estimated that such a move could send oil prices to $100 per barrel.
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The numbers tell one story.
Iran’s potential closure of the Strait of Hormuz has markets on edge, with oil prices surging and stock futures falling. The US military’s reported casualties in the conflict have added to the uncertainty. President Trump has suggested the conflict could last a while, saying the bombing will continue “as long as necessary to achieve our objective of PEACE THROUGHOUT THE MIDDLE EAST AND, INDEED, THE WORLD!”. The situation has raised concerns about the potential for severe disruption to global oil supplies, with analysts warning that prices could hit $100 per barrel if the strait is closed.
The Strait of Hormuz is a ticking time bomb, and the market is waiting for it to go off.
Author: Evan Null
