Major US stock indices opened lower on Thursday as oil prices climbed amid increasing disruptions to energy markets from the Middle East war.
At the open, the Dow Jones Industrial Average fell 212.7 points, or 0.44%, to 48526.73. The S&P 500 fell 18.4 points, or 0.27%, to 6851.08, while the Nasdaq Composite dropped 100.0 points, or 0.44%, to 22707.468.
Global petroleum costs climbed after Iran’s latest series of strikes targeting Israel, American bases, and their Gulf allies. This confrontation has persisted since the United States and Israel initiated coordinated operations on February 28.
Traders are concerned regarding the potential duration of interruptions to the production and transport of crude oil and natural gas in the Middle East region. There are anxieties that a sustained rise in energy valuations might stifle the global economic growth and drive lending rates upward.
Brent crude, the international standard, jumped 3.3% to $84.05. A benchmark US crude, WTI, advanced 4.3% to $77.90.
“While further escalation remains a risk, we think the more likely outcome is an increase in market risk aversion that likely lasts only a short time until investors can see a winding down of hostilities,” said Scott Wren, senior global market strategist at Wells Fargo Investment Institute, according to Associated Press.
In the bond market, the Treasury yield rose for a fourth straight day. The yield on the 10-year Treasury climbed to 4.14% from 4.09% late on Wednesday.