Oil prices jumped sharply Monday as widening conflict in the Middle East fueled safe-haven demand and rattled global financial markets.
Brent crude surged 8.3% to $78.50, briefly topping $82, while U.S. crude gained 7.5%. Gold climbed 2.1% amid rising geopolitical risk.
Israel expanded airstrikes on Iran and Hezbollah, while Tehran launched missiles and drones across the region, heightening fears of a prolonged conflict.
Energy facilities shut across the Middle East, and Saudi Arabia closed its largest domestic refinery following a drone strike.
Markets are closely monitoring the Strait of Hormuz, a chokepoint for roughly 20% of global oil trade, as tanker traffic slows.
Global equities fell, with Europe’s STOXX 600 down 1.3% and U.S. futures sliding. Banks and travel stocks led losses, while energy shares rallied.
The dollar strengthened broadly, rising against the euro, yen, and Swiss franc as investors sought traditional safe-haven assets.
Bond markets reflected inflation concerns, while traders assessed upcoming U.S. economic data and shifting expectations for Federal Reserve rate cuts.
