Oil Prices Jump, World Shares Mixed as US-Iran Conflict Escalates

Oil Prices Rise, Global Shares Mixed After U.S. Strikes on Iran

Oil prices increased and equity markets showed mixed results on Monday following U.S. airstrikes on Iran and subsequent Iranian responses.

In early European trading, Germany’s DAX index rose 0.2 percent to 25,105.55, while the CAC 40 in Paris gained 0.1 percent to 8,347.26. Britain’s FTSE 100 advanced 0.1 percent to 10,506.86.

U.S. stock futures were mixed. The S&P 500 futures contract declined 0.3 percent, the Dow Jones Industrial Average futures were nearly flat, and Nasdaq composite futures fell 0.9 percent.

Brent crude, the international benchmark, rose as much as nearly 5 percent early in the session before moderating. By early European hours it stood 2.3 percent higher at $77.72 per barrel. West Texas Intermediate crude gained 2.1 percent to $72.92 per barrel.

Both benchmarks had recently returned to levels seen before the Iran conflict after an interim agreement was reached and tanker traffic resumed through the Strait of Hormuz. The United States conducted additional strikes into Monday morning following an Iranian attack on a container ship in the strait that left the vessel on fire and one crew member missing. Iran responded with strikes on targets in several Middle Eastern countries.

In Asian trading, Tokyo’s Nikkei 225 fell 1.9 percent to 67,242.73. Seoul’s Kospi dropped 9 percent to 6,806.93, its lowest close since early May. Shares of SK Hynix declined 15.4 percent in Seoul after rising 13 percent on their U.S. debut Friday. Samsung Electronics shares fell 10.7 percent.

Hong Kong’s Hang Seng index edged 0.2 percent higher to 24,212.36. The Shanghai Composite lost 2.1 percent to 3,913.79. Australia’s S&P/ASX 200 was essentially unchanged at 8,808.50.

U.S. stocks closed higher on Friday. The S&P 500 gained 0.4 percent, the Dow Jones Industrial Average added 0.3 percent, and the Nasdaq composite rose 0.3 percent, supported by continued demand for companies tied to artificial-intelligence infrastructure.

SK Hynix raised approximately $26.5 billion through the sale of American depositary shares priced at $149 each. Its Seoul-listed shares had increased more than 600 percent over the prior twelve months amid strong demand for memory chips used in AI systems. The company has stated plans to at least double production capacity to meet orders. Analyst Ipek Ozkardeskaya of Swissquote noted that AI-related demand has created expectations of sustained high growth in a sector historically subject to cycles of oversupply, while also warning that technological changes or slower infrastructure spending could alter that outlook.

This week’s earnings reports from major U.S. banks, including Bank of America, Citigroup, JPMorgan Chase, Goldman Sachs, and Wells Fargo, are scheduled for release beginning Tuesday.

Market participants are also monitoring the potential effects of continued hostilities involving Iran on crude-oil supply routes and inflation. Higher oil prices and inflation readings could influence decisions by the Federal Reserve and other central banks on interest rates. Elevated bond yields have already exerted pressure on asset prices in multiple markets.

In currency trading, the dollar strengthened to 162.01 yen from 161.72 yen. The euro moved to $1.1435 from $1.1408.

The reporting is based on market data and company statements available at the time of publication.