Oil prices dropped 4% Monday while U.S. stocks rallied, as investors showed confidence despite escalating conflict between Israel and Iran.
The Dow Jones rose 415 points, or 1%, while the S&P 500 and Nasdaq gained 1% and 1.3% respectively, nearly recovering losses from late last week. West Texas Intermediate and Brent crude each declined by about 4%, easing fears of a prolonged oil price surge.
Strikes between Israel and Iran continued for a fourth day following Israel’s Friday attack, which targeted Iran’s nuclear program and killed top scientists and military figures. A U.S. official confirmed Washington had no role in that strike, though President Donald Trump said, “It’s possible we could get involved.”
“The retail gas prices [will] rise following Iran/Israel attacks,” Patrick de Haan of GasBuddy noted Monday on X.
Markets in Europe and Asia also advanced, with Japan’s Nikkei up 1.2% and the STOXX Europe 600 rising 0.3%.