Global crude oil prices soared while U.S. stock futures fell sharply on Monday as the markets were shaken by the ongoing U.S.-Israel war on Iran—and Tehran’s retaliatory strikes on major oil producing U.S. allied Middle Eastern states—which President Donald Trump has warned could last up to five weeks.
The global benchmark Brent Crude Futures index rose to nearly $79 per barrel early on Monday morning—up more than 8% since Friday and its highest level in the past 12 months.
The U.S. West Texas Intermediate benchmark has also surged 7.25% to almost $72 per barrel.
U.S. stock futures dropped in early trading on Monday, with the benchmark S&P 500 Futures falling 1.1% to 6,814 points, while Dow Futures slumped to 48,443 points, down 1.14% from Friday’s close.
The tech-heavy Nasdaq Futures index was the hardest hit, slumping 1.5% to 24,630.50 points.
Key global markets were also hit with the pan-EU STOXX Europe 50 index dropping 1.43% and the London Stock Exchange’s FTSE 100 index falling 0.8%.
In Asia, Japan’s Nikkei 225 index fell 1.35%, while Hong Kong’s Hang Seng and India’s Sensex indexes were down 2.14% and 1.3%, respectively.
The Saudi Defense Ministry said its Ras Tanura oil refinery came under an aerial attack on Monday, but authorities managed to down the incoming drones. The Associated Press reported that thick black smoke was seen rising from the refinery after the attack. Citing an official source from the Saudi Arabian Ministry of Energy, the country’s state-run news agency said Ras Tanura sustained “limited damage as a result of debris from the interception of two drones in its vicinity.” As a result of this, the refinery has been “shut down as a precautionary measure.”