The Dow Jones Industrial Average fell roughly 1.13% on Monday, closing near 48,931 — a decline of approximately 550 points from the prior session. The selloff accelerated after Iran launched drone strikes on a UAE oil facility, adding a new geopolitical flashpoint to an already uncertain week. The index had opened near flat before the Middle East news drove a decisive move into negative territory.
Geopolitical flare-ups in the Middle East hit energy infrastructure and global oil supply routes, which ripples into energy stocks, transportation costs, and broad market sentiment simultaneously. Investors holding index funds like SPY or DIA felt the drag directly, while energy names saw mixed reactions — supply disruptions can briefly lift oil prices even as equities fall. If the Strait of Hormuz becomes a focal point of conflict, roughly 20% of global oil trade flows through it, making this a risk that extends well beyond one day's price move.
Watch for any U.S. or Gulf state military response announcements in the coming 24-48 hours. July 15: Watch oil market open and Brent crude pricing for signals on how energy traders are pricing the risk. Next FOMC meeting: July 29-30, where any inflation spike from oil would be directly relevant to rate decisions.
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