Stock market: Dow futures slide 100 points, oil prices jump as Iran tensions escalate

U.S. stock futures fell and oil prices jumped Monday as geopolitical tensions in the Middle East escalated over the weekend.  

Standard & Poor’s 500 futures slipped 0.4% before the U.S. stock market opened for regular trade on Monday. That followed its largest decline in a month on Friday. Dow futures, meanwhile, dropped 130 points to start the week.

Stocks have eased from records after ending 2019 with their best annual performance since 2013.

The losses came after a U.S. airstrike killed a top Iranian general in Iraq last week. On Sunday, President Donald Trump threatened to hit Iraq with sanctions after its parliament passed a resolution to expel U.S. troops. He said the U.S. was prepared to hit dozens of Iranian assets if Tehran retaliates. 

Monitoring stocks:Santa delivered a late gift to investors, and here’s what it signals

Recession watch:If one hits, it would probably be mild. 

Rattled investors scooped up traditional “safe haven” assets like gold and government bonds on worries that military tensions will escalate further, renewing conflicts in the oil-rich Middle East.

On Monday, Brent crude, the global benchmark, rose more than 1% to briefly top $70 a barrel, its highest level since mid-September. That puts it up nearly 6% since before the Iranian general’s killing.

U.S. crude oil rose 0.9% to $63.62 per barrel.

Gold rose to $1,578.50 an ounce. The Japanese yen rose to a three-month high against the dollar, with one dollar buying 108.14 yen. The yield on the U.S. 10-year Treasury note slipped to 1.78% from 1.79% on Friday.

Financial markets retreated around the world on fears that violence could reverberate across the Middle East. In London, the FTSE 100 lost 1% while Germany’s DAX dropped 1.4%. In Asia, Japan’s Nikkei 225 index shed 1.9% and Hong Kong’s Hang Seng index lost 0.8%.

Powered by WPeMatico