Oil Hits $100 and Stocks Tumble as Iran Conflict Disrupts Global Energy Supply

TLDR

• Oil prices spiked above $119 a barrel Sunday before settling around $103–$107 Monday morning
• Dow futures fell over 1,000 points overnight; S&P 500 and Nasdaq futures each dropped about 1%
• Iran conflict has effectively closed the Strait of Hormuz, cutting off a major global oil route
• Iraq’s output reportedly fell about 70%; Kuwait announced unspecified production cuts
• G7 ministers are meeting Monday to discuss releasing up to 400 million barrels from reserves

US stock futures dropped sharply on Monday after oil prices surged past $100 a barrel for the first time since 2022, driven by escalating conflict in Iran and major disruptions to Middle East energy supply.

Dow Jones Industrial Average futures fell more than 1,000 points overnight before trimming some losses. Contracts on the S&P 500 and Nasdaq 100 each dropped around 1%.

West Texas Intermediate crude peaked at $119.48 a barrel on Sunday before pulling back. By Monday morning, it was trading near $103. Global benchmark Brent crude was changing hands above $107, still about 15% higher on the day.

The surge in oil prices follows strikes on oil infrastructure in Tehran. Mojtaba Khamenei, son of former Ayatollah Ali Khamenei, has been named Iran’s new supreme leader. He is expected to continue the conflict, having previously aligned with hardline factions.

The Strait of Hormuz, a critical shipping corridor for global oil, remains effectively closed. US Energy Secretary Chris Wright said Sunday the best-case scenario is tanker traffic resuming within a few weeks.

Iraq’s oil output has reportedly dropped by about 70%. Kuwait has confirmed production cuts, though exact figures have not been given. Several Persian Gulf producers have shut in or disrupted refining operations, with analysts at Saxo Bank flagging refined products like diesel and jet fuel as the most immediate concern.

G7 Responds to Energy Crisis

G7 finance ministers are meeting Monday to discuss a coordinated release of petroleum reserves through the International Energy Agency. The proposal involves releasing up to 400 million barrels. The US and two other countries are said to support the move.

The news helped ease some pressure on oil prices and stock futures, which had fallen even further in earlier overnight trading.

President Trump said in a social media post that a short-term rise in oil prices was a “very small price to pay” for eliminating Iran’s nuclear threat. That comment rattled markets Sunday before the G7 reserve release reports helped calm some investor concern.

Bitcoin Briefly Drops Below $65,000

Bitcoin fell below $65,000 early Monday before recovering to around $68,000. Gold and silver futures each dropped less than 1%.

The US Dollar Index rose 0.3%. The yield on the 10-year Treasury note edged up to 4.175%.

Last week was already rough for stocks. The Dow lost about 3%, its steepest weekly drop since tariff concerns hit markets in April 2025. The S&P 500 fell around 2% and the Nasdaq finished down over 1%.

Investors are now watching Wednesday’s Consumer Price Index report and Friday’s Personal Consumption Expenditures reading, though neither will yet reflect the full impact of the oil price spike.

Oracle and Adobe are the main earnings reports expected this week.

The post Oil Hits $100 and Stocks Tumble as Iran Conflict Disrupts Global Energy Supply appeared first on CoinCentral.