Crude oil prices surged and US stock index futures fell on Monday after Iran launched a ballistic missile attack on US forces in the Middle East, according to reports. The US military said it intercepted the attack, though the apparent escalation of hostilities rattled global markets.
West Texas Intermediate crude rose sharply in early trading, while Brent crude also gained, as traders priced in the risk of supply disruptions from the volatile region. S&P 500 and Dow futures declined, reflecting investor anxiety over the prospect of a broader conflict.
The attack, which Tehran said was a response to recent US actions, involved multiple ballistic missiles aimed at American positions. The US confirmed no forces were hit, with the missiles either falling short or being intercepted by defensive systems. The strike came after a brief pause in direct exchanges between the two countries, following earlier tit-for-tat strikes.
Markets had been on edge for weeks amid rising tensions in the Middle East. The renewed assault triggered a flight to safe-haven assets, with gold and the US dollar also gaining. Analysts warned that further escalation could push oil prices higher and prolong market volatility. The Biden administration said it was consulting with allies on a response.