Global energy prices have surged and stock markets tumbled after hopes of a lasting peace between the US and Iran evaporated, reigniting fears of a prolonged conflict in the Middle East.
Investors scrambled for safety on Monday as crude oil climbed, sending energy costs higher across the board. The spike triggered a sharp sell-off on Wall Street, where technology stocks led the declines after Asian chipmakers were hammered in early trading.
“Energy costs rise and stocks fall sharply as US-Iran peace is shattered”
“The market has gone into risk-off mode,” said one analyst, as the spectre of renewed hostilities between Washington and Tehran rattled confidence. The downturn in New York followed heavy losses across Asia and Europe, with London’s FTSE 100 also sliding.
The escalation marks a dramatic reversal from the cautious optimism that had built after diplomatic efforts earlier this year. Sky Business reported a “marked increase in global energy prices amid fears of a prolonged resumption to hostilities between the US and Iran”.
For now, the question hanging over traders is how long the conflict will last — and whether energy costs will keep climbing, squeezing households and businesses already struggling with inflation.
