Military strikes on Iran rattled global markets on Monday with U.S. futures following markets in Europe and Asia lower. Energy prices rose sharply.
Futures for the S&P 500 and Dow Jones Industrial Average each sank about 1%.
The price of a barrel of U.S. benchmark rose more than 8% to $72.70 per barrel, a price not seen since the U.S. summer driving season and the 12-day Israel-Iran war. Brent crude jumped 9% to nearly $79.19 per barrel.
The spike in the cost for a barrel of crude could show up in a matter of days or weeks at gas pumps, with retailers forced to pay more for new shipments of gasoline.
Travel sectors, from airlines and cruise operators to global hotel chains, tumbled.
But it wasn’t just oil. Natural gas futures rose early 6% and futures for fuel used for transportation as well as industrial purposes, spiked more than 14%.
Germany’s DAX dropped 1.9% to 24,817.42, while in Paris the CAC 40 lost 1.7% to 8,435.80. Britain’s FTSE 100 slipped 1% to 10,808.53.
Shares fell in most Asian markets but they rose in Shanghai, where higher oil prices lifted some oil company stocks such as CNOOC, China Petroleum & Chemical and PetroChina to the 10% limit.
The Shanghai Composite index climbed 0.5% to 4,182.59, while in Hong Kong, the Hang Seng lost 2.1% to 26,059.85.
Japan’s Nikkei 225 index initially fell more than 2%. It closed 1.4% lower at 58,057.24. Offsetting other losses, shares in defense-related stocks including Mitsubishi Heavy Industries and IHI Corp. advanced.
In India, which could face disruptions to its access to oil due to the hostilities, the Sensex fell 1.3%.
Taiwan’s benchmark lost 0.9% and Si