Stock futures also dropped as traders also closely watched the status of possible peace talks.
The price of oil jumped sharply and stock futures tumbled Sunday evening as traders digested renewed tensions between the U.S. and Iran over the critical Strait of Hormuz
S&P 500 futures dropped nearly 0.8%, Nasdaq 100 futures fell 0.7%, and Dow futures tumbled 500 points, or 0.7%. Russell 2000 futures slid 1.4%.
Wholesale gas prices also rose by more than 4%, and heating oil futures, which are a proxy for jet fuel prices, also spiked 7%. Natural gas prices rose 2%.
The moves adds to weeks of dramatic ups and downs as investors have tried to digest the almost daily swings between war and peace. While major U.S. stock indexes had recently recovered all loses incurred since the war began, oil prices have remained elevated, costing consumers more at the gas pump and pushing inflation higher.
Of particular concern is the Strait of Hormuz, the crucial waterway off Iran, where more than 20% of the world’s oil supply normally passes.
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