Oil surges and US futures fall after strikes on Iran

Oil prices jumped and US stock futures slid as traders repositioned after the weekend attacks against Iran by the US and Israel. Brent crude spiked about 9% and WTI rose roughly 7% shortly after markets opened, later trading 4.7% and 4.2% higher at $76.27 and $69.82 a barrel, respectively, at 9:11 p.m.

ET. Iran also attacked ships passing through the Strait of Hormuz on Sunday, amplifying worries about global energy flows. Economists and strategists flagged immediate supply-chain disruption. "The immediate price shocks are being accompanied by a fresh wave of supply chain disruptions," Mohamed El-Erian wrote, pointing to insurance costs, maritime cargo, and aviation.

Barclays called the situation the "worst fears" for oil, while Franklin Templeton noted that about 20% of global LNG trade transits the Strait of Hormuz and described the waterway as "the macro circuit breaker." Shipping costs rose in the day after the initial attacks.

Iran, Strait of Hormuz

oil prices, brent crude, wti, us futures, iran, israel, hormuz, supply chain, shipping costs, lng