US Markets Fluctuate Amid Middle East Tensions

Major US stock indexes experienced volatility on Monday as investors reacted to escalating tensions in the Middle East. The Dow Jones Industrial Average closed down 0.15%, the S&P 500 edged up 0.04%, and the Nasdaq Composite gained 0.36%.

Trading activity was notably high in technology stocks such as Nvidia and Palantir, while travel stocks, including United Airlines, Delta Air Lines, and American Airlines, saw declines.

Global markets also felt the impact, with London's FTSE 100 dropping 1.2% and Germany's DAX falling 2.4% by the end of the day.

Investors are closely monitoring the potential for rising gas prices following Iran's retaliatory actions against US airstrikes. Over the weekend, Iranian drone strikes targeted QatarEnergy, a major producer of liquefied natural gas, and attacked tankers in the Strait of Hormuz, a critical passage for shipments to Europe and Asia.

By Monday, European and Asian gas price benchmarks had risen by 40%, and Brent crude oil prices increased by 6.9%, closing at approximately $72 per barrel in the US.

The conflict has added uncertainty to the US economy, which is still adjusting to previous tariff impacts. Mortgage rates rose to 6.12% on Monday, up from below 6% last week, as 10-year US Treasury yields increased by 4%.

President Donald Trump indicated that the conflict is expected to last four to five weeks but could extend further, potentially affecting consumer prices if prolonged.

JP Morgan CEO Jamie Dimon commented on the situation, stating, > "The economy is not often driven by something like that unless it is prolonged. If it's not prolonged, it's not going to be a major inflationary hit."