The S&P 500 Index fell 0.69%, the Dow Jones Industrial Average decreased by 0.74%, and the Nasdaq 100 Index dropped 0.65% on the latest trading day, marking 1.5-week lows for the S&P and Nasdaq and a 2-month low for the Dow. This downturn occurs as the U.S. and Israel initiated joint military operations against Iran, prompting President Trump to indicate that combat could last weeks.
Amid the rising tensions, WTI crude oil prices surged over 8% to an 8.25-month high, impacted by halted tanker traffic in the Strait of Hormuz following attacks on oil tankers by Iran. Goldman Sachs assessed a real-time risk premium of $18 per barrel for crude oil, estimating the effects of a complete cessation of tanker traffic lasting six weeks. In response to the crisis, gold and silver prices rose to monthly highs, while bond yields initially decreased before climbing, with the 10-year T-note yield reaching 4.01%.
