Oil Prices Rise, U.S. Stock Futures Slide In Response To U.S. Strikes On Iranian Nuclear Sites

(AP) — The price of oil rose and U.S. stock futures fell as global markets react to the U.S. strike against nuclear targets in Iran.

The price of Brent crude oil, the international standard, rose 3.3% to $79.60 a barrel. U.S. crude rose 3.1% to $76.16 a barrel.

On Saturday, U.S. forces attacked three Iranian nuclear and military sites, further increasing the stakes in the war between Israel and Iran.

Futures for the S&P 500 fell 0.5%, while futures for the Dow Jones Industrial Average slipped 0.4%. Treasury yields fell slightly. The modest moves indicate markets are taking the latest development in stride.

The conflict, which began with an Israeli attack against Iran on June 13, has sent oil prices yo-yoing, which has in turn caused see-saw moves for the U.S. stock market, because of rising and ebbing fears that the war could disrupt the global flow of crude. Iran is a major producer of oil and also sits on the narrow Strait of Hormuz, through which much of the world’s crude passes.

An Iran retaliation that included closing off the waterway would be technically difficult to pull off but traders are afraid Iran could severely disrupt transit through it, sending insurance rates spiking and making shippers nervous to move without U.S. Navy escorts.

Some analysts think Iran is unlikely to close down the waterway because the country uses it to transport its own crude, mostly to China, and oil is a major source of revenue for the regime.

Source: PBS/AP