Stocks fell on Monday as the latest developments in the Middle East sent oil prices higher, sparking further worries about instability in the region.
The Dow Jones Industrials index failed 557.37 points, or 1.1%, to end the day at 48,941.90.
The S&P 500 slid 29.37 points to 7,200.75.
The tech-driven NASDAQ weakened 46.64 points to 25,067.80.
On Monday, the United Arab Emirates said it that had intercepted a number of missiles fired from Iran. That’s the first time the UAE’s missile alert system was activated since the U.S.-Iran ceasefire began last month.
Oil prices increased following the action. U.S. West Texas Intermediate crude futures rose 3% to trade above $105 per barrel, while international benchmark Brent crude futures were up 5% to above $114.
Energy prices were already climbing earlier in the day after conflicting reports of an Iranian attack on a U.S. warship and as Iranian media was reporting that a ship was turned back from the Strait of Hormuz.
Iran’s Navy said it blocked “American-Zionist” warships from entering the zone, according to state TV reports cited by Reuters. A separate dispatch from the Fars News Agency said two missiles hit a U.S. warship near Jask island after it ignored warnings, though neither report was independently confirmed.
U.S. Central Command later wrote in a post on X that “no U.S. Navy ships have been struck.”
Oil prices increased Monday. U.S. West Texas Intermediate crude futures rose marginally to trade above $102 per barrel, while international benchmark Brent crude futures were up 2% to above $110. Energy price
Norwegian Cruise Line dropped $1.61, or 8.6% to $17.20, after reporting first-quarter earnings of 23 cents per share and $2.33 billion in revenue, against consensus estimates for 14 cents and $2.36 billion. Guidance for the current quarter and full-year was far below expectations, as Norwegian grapples with higher fuel prices due to the U.S.-Iran war.
Prices for the 10-year Treasury lost ground, raising yields to 4.44% from Friday’s 4.39%. Treasury prices and yields move in opposite directions.
Oil prices surged $3.29 to $105.29 U.S. a barrel.
Gold prices sank $117.60 to $4,526.90 U.S. an ounce.
