Oil Prices Ease as Wall Street Steadies After Iran Scare

Global markets stabilized Monday after oil prices surged overnight on escalating tensions tied to the Iran war before easing later in the day.

The rebound in energy prices briefly rattled investors and pushed stock indexes lower across Asia and Europe before markets steadied ahead of trading in the United States.

Wall Street remains near record highs

The S&P 500 slipped 0.1% in early trading after reaching a record high last week.

Meanwhile:

• The Dow Jones Industrial Average fell 64 points
• The Nasdaq Composite edged up 0.1%

Despite volatility, major U.S. indexes remain close to historic highs as investors continue betting heavily on artificial intelligence and strong corporate earnings.

Oil prices swing after Trump warning

The sharpest market movement came overnight after Donald Trump warned Iran on social media that:

“The Clock is Ticking.”

The message intensified fears surrounding the ongoing conflict in the Middle East and the continued disruption in the Strait of Hormuz.

The price of Brent crude oil briefly climbed above $112 per barrel before retreating.

Later Monday:

• Brent crude fell 1.3% to $107.84 per barrel
• Prices remained significantly above the roughly $70 level seen before the war began

Bond yields continue pressuring markets

Investors remain focused on rising bond yields, which have become one of the biggest risks facing global markets.

Higher yields:

• Increase borrowing costs for households
• Push mortgage rates higher
• Raise financing costs for corporations
• Threaten expensive AI infrastructure investments

The yield on the U.S. 10-year Treasury note edged down slightly to 4.58%.

However, yields globally remain elevated due to:

• Rising oil-driven inflation fears
• Concerns about central bank policy
• Worries over U.S. government debt levels

AI stocks remain under pressure

Artificial intelligence stocks have driven much of Wall Street’s gains in 2026, but investors are increasingly cautious as borrowing costs rise.

The market is now closely watching NVIDIA, which is scheduled to release quarterly earnings Wednesday.

Analysts say Nvidia’s results could heavily influence the broader technology sector and investor confidence in the AI boom.

Energy and utility deals move markets

Several major corporate developments also influenced trading Monday.

Dominion Energy surged 10.5% after NextEra Energy agreed to acquire the company in an all-stock transaction expected to create the world’s largest regulated electric utility by market value.

Meanwhile:

• NextEra shares fell 4.4%
• Boston Scientific rose 2% after expanding its stock buyback program
• Delta Air Lines climbed 2.1% after Berkshire Hathaway disclosed a major investment increase

Middle East tensions continue affecting markets

Investor anxiety remains tied to the fragile ceasefire between the United States and Iran.

Over the weekend:

• A drone strike reportedly targeted the UAE’s nuclear power facility perimeter
• No injuries or radiation leaks were reported
• The incident renewed fears of broader regional escalation

Markets remain highly sensitive to any disruption affecting Gulf oil shipments.

Investors await major retail earnings

Beyond Nvidia, investors are also preparing for earnings reports from major U.S. retailers this week, including:

• Target
• Home Depot
• Walmart

Those reports could offer a clearer picture of how rising fuel costs and inflation are impacting consumer spending across the United States.