Oil futures surge following US strikes in Iran

Oil prices surged during late Sunday trading after the US launched strikes on three Iranian nuclear Saturday evening in a major escalation of the Iran-Israel conflict.

Oil prices surged late Sunday in Wall Street’s first reaction to the United States’ strikes on three Iranian nuclear Saturday evening — a major escalation of the Iran-Israel conflict. US oil futures jumped 3.6% to about $76.47 per barrel. Brent futures, the global benchmark for oil prices, increased 3.2%, hitting $74.59 per barrel. US stock futures fell in response to the attacks. Dow futures dropped 250 points, or 0.6%. S&P 500 futures fell 0.6%, while Nasdaq futures tumbled 0.7%. The US dollar, however, rose 0.3%, an encouraging sign after America’s currency had tumbled after the Trump administration put in place historic tariffs on foreign imports. The dollar, widely referred to as the world’s reserve currency, tends to rally in times of global unease and conflict, but some market observers questioned if that would happen again under Trump’s “America First ” policies. Israeli stocks were bolstered Sunday by the news, as traders believed the attacks could lower the chance that Iran poses a nuclear threat against the Jewish state. Israeli stocks surged to record highs. The Tel Aviv 125 climbed 1.8% to close at 2,919.62. The TA-35 gained 1.5% to close at 2,877.78, an all-time high. The United States produces an average of roughly 13.4 million barrels a day. Crude oil stockpiles have increased more than 200 million barrels since early January and OPEC+ recently announced plans to increase production, but there are growing concerns that Iran may close the Strait of Hormuz or pressure the flow of oil and trade in the area.