As the deadly Israel-Hamas conflict put additional strain on a market already vulnerable to rising inflation and interest rates, the S&P 500 fell on Monday.
The Nasdaq Composite fell around 0.9% while the broader market index fell down 0.5%. About 130 points, or 0.4%, were lost from the Dow Jones Industrial Average.
After the militant organisation Hamas conducted an invasion, which Israel appeared to be unprepared for, the Israeli-Palestinian war erupted on Saturday. Operation Al Aqsa Flood, as it is known by Hamas, has resulted in the deaths of over 700 Israelis and at least 490 Palestinians as a result of Israeli strikes in retaliation on the Gaza Strip. Benjamin Netanyahu, the Israeli prime minister, declared war on his nation as a result of the attack.
Since 2007, the Gaza Strip has been ruled by Hamas, a terrorist organisation with Iranian support.
Rising geopolitical tensions brought on by the fighting may have an impact on the energy market, however other experts predict only a temporary spike in oil prices. The market volatility that has put traders on edge due to sustained inflation and increased interest rates may also be stoked by the escalating conflict.
On Monday, WTI crude oil futures were up 3.5% and were trading over $85 per ounce. The price of global Brent futures increased 3.2% to $87.29.
Source (CNBC)
