Global Stocks Fall as Oil Prices Surge on Iran Conflict

Global stock markets tumbled and oil prices surged early Monday as the war in Iran entered its second week, raising fears of disruptions to Middle East energy production and shipping routes. Wall Street futures for the S&P 500, Nasdaq and Dow Jones Industrial Average dropped more than 1 percent before the opening bell, following a retreat of over 2 percent late Sunday. The escalation followed weekend strikes by both sides, including attacks on civilian infrastructure, which briefly pushed oil prices to nearly 120 dollars per barrel.

The conflict, initiated more than a week ago by attacks from the United States and Israel on Iran, has now drawn in key Persian Gulf nations vital to global oil and gas flows. Over the weekend, Bahrain accused Iran of striking a desalination plant essential for drinking water supplies in Gulf countries. Bahrain's national oil company declared force majeure after its only refinery was hit, halting operations. In response, Israel targeted oil depots in Tehran, producing thick smoke and triggering environmental warnings. These actions heightened concerns about supply chain vulnerabilities in the region.

Oil benchmarks reflected the volatility. Brent...