Global Stocks Drop, Oil Surges on Iran War Fears

Global stock markets tumbled and oil prices surged early Monday as the war in Iran entered its second week, raising fears of disruptions to energy production and shipping in the Middle East. The conflict, which began more than a week ago with attacks by the United States and Israel on Iranian targets, saw both sides strike new sites over the weekend, including civilian infrastructure.

Wall Street futures pointed to a sharp decline at the open, with contracts for the S&P 500, Nasdaq and Dow Jones Industrial Average each down more than 1 percent in premarket trading after falling over 2 percent late Sunday. The spike in oil prices, which briefly touched nearly 120 dollars per barrel, reflected concerns over the Persian Gulf's role in global energy supplies. By 7:45 a.m. EDT, Brent crude stood at 104.94 dollars per barrel, up more than 13 percent from Friday's close, while the U.S. benchmark crude traded at 103.27 dollars.

The downturn rippled worldwide. In Asia, Japan's Nikkei 225 index closed 5.2 percent lower at 52,728.72 after an early plunge of over 7 percent. South Korea's Kospi fell 6 percent to 5,251.87, Taiwan's benchmark dropped 4.4 percent and India's Sensex lost 2.3...