NEW YORK (AP) \u2014 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. <\/p>\n
The price of Brent crude oil, the international standard, rose 2.6% to $79 a barrel. U.S. crude rose 2.6% to $75.76 a barrel.<\/p>\n
On Saturday, U.S. forces attacked three Iranian nuclear and military sites<\/a>, further increasing the stakes in the war between Israel and Iran. <\/p>\n Futures for the S&P 500 and the Dow Jones Industrial Average slipped 0.4%, while Nasdaq futures fell 0.5%. Treasury yields were little changed. The modest moves indicate markets are taking the latest development in stride. <\/p>\n That was evident in early Asian trading. Tokyo\u2019s Nikkei 225 index fell 0.6%. Other major regional markets also logged moderate declines.<\/p>\n The conflict, which began with an Israeli attack against Iran on June 13, has sent oil prices yo-yoing<\/a>, 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<\/a>, through which much of the world\u2019s crude passes.<\/p>\n \u201cThe situation remains highly fluid, and much hinges on whether Tehran opts for a restrained reaction or a more aggressive course of action,\u201d Kristian Kerr, head of macro strategy at LPL Financial in Charlotte, North Carolina, said in a commentary.<\/p>\n 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<\/p>\n 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 revenue source for the regime.<\/p>\n \u201cIt\u2019s a scorched earth possibility, a Sherman-burning-Atlanta move,\u201d said Tom Kloza, chief market analyst at Turner Mason & Co. \u201cIt\u2019s not probable.\u201d<\/p>\n Kloza thinks oil futures will ease back down after initial fears blow over.<\/p>\n Ed Yardeni, a long-time analyst, agreed, writing in a report that Tehran leaders would likely hold back.<\/p>\n \u201cThey aren\u2019t crazy,\u201d he wrote in a note to investors Sunday. \u201cThe price of oil should fall and stock markets around the world should climb higher.\u201d <\/p>\n Other experts aren\u2019t so sure.<\/p>\n Andy Lipow, a Houston analyst covering oil markets for 45 years, said countries are not always rational actors and that he wouldn\u2019t be surprised if Tehran lashed out for political or emotional reasons.<\/p>\n \u201cIf the Strait of Hormuz was completely shut down, oil prices would rise to $120 to $130 a barrel,\u201d said Lipow, predicting that that would translate to about $4.50 a gallon at the pump and hurt consumers in other ways. <\/p>\n \u201cIt would mean higher prices for all those goods transported by truck, and it would be more difficult for the Fed to lower interest rates.\u201d<\/p>\n In Asian trading early Monday, Taiwan\u2019s Taiex fell 1.5% while the Kospi in South Korea lost 1%. Both Taiwan and South Korea rely heavily on oil imported through the Strait of Hormuz. <\/p>\n Australia\u2019s S&P\/ASX fell 0.7% and the benchmark in New Zealand lost 0.5%.<\/p>\n","protected":false},"excerpt":{"rendered":"NEW YORK (AP) \u2014 The price of oil rose and U.S. stock futures fell as global markets react…\n","protected":false},"author":3,"featured_media":6897,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[97,8312,64,8310,8309,455,439,57,51,83,3461,8311,50,8313,52,61,107],"class_list":{"0":"post-6896","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-news","8":"tag-2024-2025-mideast-wars","9":"tag-andy-lipow","10":"tag-business","11":"tag-ed-yardeni","12":"tag-energy-markets","13":"tag-federal-reserve-system","14":"tag-financial-markets","15":"tag-general-news","16":"tag-headlines","17":"tag-iran","18":"tag-iran-government","19":"tag-kristian-kerr","20":"tag-news","21":"tag-tom-kloza","22":"tag-top-stories","23":"tag-u-s-news","24":"tag-world-news"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/114730394261961863","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/6896","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=6896"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/6896\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/6897"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=6896"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=6896"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=6896"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}