(NEW YORK) — Stocks slid on Monday morning in the first trading session after the U.S.-Israeli attack on Iran over the weekend.
The Dow Jones Industrial Average fell 280 points, or 0.5%, while the S&P 500 dropped 0.5%. The tech-heavy Nasdaq declined 0.5%.
The strikes early Saturday morning prompted Iranian drone attacks and missile fire targeting U.S. military bases and Gulf countries. Tit-for-tat strikes rapidly widened into a regional war.
Four U.S. service members have been killed in action, U.S. Central Command said on Monday. At least 555 people have been killed in the U.S.-Israeli strikes on Iran, the Iranian Red Crescent Society said.
Oil prices spiked on Monday amid fears of a prolonged disruption of the Strait of Hormuz, a trading route that facilitates the transport of about one-fifth of global oil supply. Iran asserts control over the passage of tankers through the strait.
Brent crude prices soared more than 7%, threatening to push up prices for auto fuel and hike transport costs for other goods.
An array of global stock exchanges suffered marked losses on Monday.
In Europe, the pan-continental STOXX 600 index tumbled 1.6%. Tokyo’s Nikkei 225 index slipped 1.3%, while South Korea’s KOSPI dropped 1%.
Angelo Kourkafas, a senior global strategist for investment strategy at Edward Jones, on Monday acknowledged the volatility in markets but downplayed the long-term risk.
“While the situation remains dynamic, both historical patterns and market fundamentals offer some reassurance,” Kourkafas said in a statement to ABC News. “Geopolitical flare ups can create short term volatility, but recent episodes have produced limited and short lived market impacts.”
The CBOE Volatility Index (VIX), a measure of anticipated market volatility, climbed more than 7% on Monday.
President Donald Trump announced “major combat operations” against Iran on Saturday, with daytime strikes in the joint U.S.-Israel attack targeting military and government sites, officials said.
On Sunday, Iranian state television confirmed that Ayatollah Ali Khamenei was among those killed by airstrikes in Tehran on Saturday.
Iran is responding to the U.S.-Israeli operation with missile and drone attacks targeting Israel, regional U.S. bases and Gulf nations.
Israel is also intensifying its long-running strike campaign in Lebanon following fresh attacks by the Iranian-aligned Hezbollah militia.
In remarks on Monday, Iranian and American officials signaled expectations of an extended conflict.
The secretary of Iran’s Supreme National Security Council, Ali Larijani, said that Iran is prepared for a long war.
“Iran, unlike the United States, has prepared itself for a long war,” Larijani wrote in a post on X on Monday. He added that Iranian armed forces “have not engaged in any attacks except in defense.”
Gen. Dan Caine, the chairman of the Joint Chiefs of Staff, did not specify a timeline, but said, “This is not a single overnight operation. The military objectives … will take some time to achieve.”
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