Global markets went into meltdown mode Monday as escalating conflict in Iran triggered a massive selloff in stocks and a stampede into safe havens.
The numbers tell the story:
- Oil skyrocketed 8% to $78/barrel (spiked 13% earlier)
- Gold jumped 2% to $5,380/oz
- The dollar index climbed 0.5%
- European futures plunged 2.3%
- S&P 500 futures tumbled 1.4%
The Strait of Hormuz—through which 20% of global oil flows—is effectively closed, threatening to push crude to $108 if the shutdown persists, according to Bloomberg Economics.
“This is hitting at a fragile time,” said Dec Mullarkey of SLC Management. “Markets were already sensitive to AI disruption and credit stress. Now add oil prices to the mix.”
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The selling spree follows months of gains, with Asian stocks now taking the biggest hit. Japan’s Topix banking index cratered 6.3%—its worst drop since April.
Not everyone’s panicking. “Iran’s capacity is limited,” noted Pepperstone strategist Dilin Wu. “Negotiation may be the more viable path.”
But Barclays warns against buying the dip: “Not yet. Wait for a 10% S&P drop.”
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