Oil jumps as Middle East tensions drive safe-haven demand, stocks slip

Oil jumps as Middle East tensions drive safe-haven demand, stocks slip

LONDON — Oil prices surged sharply on Monday amid ongoing military tensions in the Middle East, while global equity markets retreated as investors flocked to safe-haven assets such as the U.S. dollar and gold.

Brent crude rose 4.5% to $76.07 a barrel from $82 previously, while WTI crude increased 3.9% to $69.59 a barrel. Gold gained 1.0% to $5,327 per ounce.

Around 20% of global seaborne oil trade and 20% of liquefied natural gas is reportedly stranded near the Strait of Hormuz due to fears of tanker attacks and lack of insurance.

Asian stock markets opened lower, with Hong Kong’s Hang Seng down about 2% and Japan’s Nikkei 225 falling roughly 1.5%.

U.S. futures also declined, with S&P 500 futures and Nasdaq Composite futures dropping around 0.7%, indicating a volatile trading session on Wall Street.

Aytac Zeyanlova