Oil Surges and Stocks Retreat as Trump Warns of Military Action and Strait of Hormuz Takeover
Global crude oil prices rallied while Wall Street stock futures slid on Monday following US President Donald Trump’s warnings of potential military strikes against Iran if nuclear negotiations collapse.
Global commodity markets experienced a sharp split on Monday as crude oil prices surged while international equity markets retreated following escalating geopolitical rhetoric. The market jitters were triggered by US President Donald Trump’s remarks on Sunday, where he warned that Washington could resume bombing campaigns against Iran and seize control of the strategically critical Strait of Hormuz if a nuclear accord is not finalized. Consequently, Brent crude gained 1.35 percent to settle at $81.66 per barrel, and US crude spiked 2.4 percent to $77.66 per barrel. Meanwhile, the escalation cast a shadow over equity markets, sending Dow Jones and S&P 500 futures down by 0.4 percent, while tech-heavy Nasdaq futures fell 0.6 percent.