New York — Wall Street opened the week under pressure as U.S. stocks dipped and oil prices surged in the wake of President Donald Trump’s stark warning to Iran, urging “everyone” to evacuate Tehran. The remarks, delivered amid escalating tensions in the Middle East, rattled global markets and renewed concerns over energy security.
Market Reaction
U.S. stock futures turned negative after the president’s comments, with analysts citing heightened geopolitical risk as the driver. The S&P 500 and Nasdaq futures both slipped, signaling investor caution across sectors.
At the same time, oil markets spiked sharply. West Texas Intermediate crude rose as much as 2.7%, while Brent crude climbed 2.2% before retreating slightly later in the day. Traders said the sudden jump reflected fears of supply disruptions through the Strait of Hormuz, the vital shipping lane through which nearly a fifth of the world’s oil passes.
Goldman Sachs analysts warned that if the strait were blocked or disrupted, Brent crude could surge toward $100 per barrel, a level not seen in years.
The Trigger
The turbulence followed Trump’s social media post urging an immediate evacuation of Tehran, hours after Israeli strikes reportedly hit a state media building in the Iranian capital. The message sparked alarm over the potential for a wider regional conflict.
Energy analysts say the U.S. administration is also pressuring domestic producers to step up output to contain any sharp increase in global fuel costs. Still, markets remain highly sensitive to the possibility of Iranian retaliation or a protracted crisis.
Global Implications
The surge in oil highlights the fragility of energy markets at a time when central banks are balancing inflation concerns with sluggish growth. A sustained rise in fuel costs could complicate monetary policy decisions in both the U.S. and Europe, potentially delaying expected rate cuts.
Internationally, investors are bracing for further volatility. European markets also dipped on Monday, while safe-haven assets like gold and U.S. Treasuries saw inflows as traders sought security.
Looking Ahead
As tensions mount, the White House has not detailed its next steps, but officials insist Washington will protect global energy flows. Meanwhile, markets will watch closely for Iran’s response and whether the conflict escalates beyond symbolic strikes.
For investors, the message is clear: geopolitical risks are once again dictating the direction of markets, with oil at the center of the storm.
