Stocks close higher, despite intensifying Israel-Iran conflict
Oil prices fell and stocks closed higher on Monday, indicating optimism among investors about the limits of economic fallout from the ongoing Israel-Iran conflict.
The Dow Jones Industrial Average closed up 317 points, or 0.7%, erasing much of the losses suffered on Friday as back-and-forth strikes broke out between the two countries.
The S&P 500 climbed 0.9% on Monday, while the tech-heavy Nasdaq jumped 1.5%. In each case, the gains erased nearly all of the losses suffered as the conflict began days earlier.
Oil prices, meanwhile, ticked slightly lower on Monday, easing a surge in prices set off late last week as investors feared a wider regional war in the oil-rich Middle East.
The U.S. West Texas Intermediate futures price -- a key measure of U.S. oil prices -- dropped 2.3% on Monday. Brent crude future prices, another top measure of oil prices, also fell about 1.8%. Each index had climbed as much as 10% in the immediate aftermath of the conflict.
Aerial attacks between Israel and Iran continued overnight into Monday, marking a fourth day of strikes following Israel's Friday attack. That surprise operation hit at the heart of Iran's nuclear program, striking key facilities and killing several nuclear scientists as well as high-ranking military leaders, according to Israeli officials.
The U.S. did not provide any military assistance or have any involvement in Israel's Friday strikes, a U.S. official told ABC News. President Donald Trump told ABC News on Sunday, "It's possible we could get involved." The U.S. did provide assistance in shooting down incoming missile and drone attacks from Iran in response to Israel's initial barrage, officials said.
The drop in oil prices may ease a potential uptick in the price of gasoline for U.S. drivers.
Since crude oil makes up the top ingredient in car fuel, the Israel-Iran conflict threatened to modestly increase prices over the coming days and significantly hike them in the event of a wider war, experts previously told ABC News.
“By later this week, we'll likely see nearly all states with price increases as retail gas prices rise following Iran/Israel attacks,” Patrick de Haan, the head of petroleum analysis at GasBuddy, said on Monday in a post on X.
The move higher for U.S. stocks mirrored gains in markets across Asia and Europe. The STOXX Europe 600 index ticked up 0.3% by mid-afternoon local time. In Japan, the Nikkei 225 in Tokyo climbed 1.2% on Monday.
ABC News' David Brennan contributed to this report.
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