Key TakeawaysUS stocks dipped early Monday after European and Asian peers fell more sharply, as the oil prices rally continued, hitting import-dependent economies especially hard.Brent crude oil prices spiked to nearly $120 per barrel before slightly paring gains, after major regional producers cut energy production.US President Donald Trump said Sunday that higher oil prices were a \u201cvery small price to pay\u201d for the destruction of Iran\u2019s nuclear capabilities.<\/p>\n
Equities fell at the open on Monday as energy prices showed no signs of halting their rally, amid production cuts and an exchange of strikes on oil storage facilities throughout the Middle East.<\/p>\n
The Morningstar US Index<\/a> was down 0.6% in early trading, while the S&P 500 and the tech-heavy Nasdaq each shed about 1%. The Morningstar Europe Index<\/a> slumped 1.8% in dollar terms on Monday morning, while Asian stocks closed nearly 3.9% lower.<\/p>\n Market volatility, as measured by the Cboe Volatility Index, also spiked above 30 for the first time since April 2025\u2019s tariff meltdown.<\/p>\n \u201cGlobal equity markets have been dealt a significant blow as we kick off a new week, with traders waking up to the potential consequences of the Middle East conflict that only ever seems to deteriorate by the day,\u201d Joshua Mahony, chief market analyst at Scope Markets, says.<\/p>\n \u201cWhile much of the past week was spent hoping that this would be a short-term conflict that ultimately resolves with oil flowing globally once again, the weekend targeting of Iranian oil facilities spells out a new phase to the conflict that ultimately brings significant consequences for the long-term supply dynamic once the dust settles,\u201d Mahony adds.<\/p>\n Energy Price Spike Continues<\/p>\n Major Middle Eastern energy producers including Kuwait, Iran and the UAE cut production amid ongoing strikes in the region, while Bahrain Petroleum Company (Bapco) became the region\u2019s second producer after Qatar to declare force majeure.<\/p>\n Qatar\u2019s energy minister told the FT last week that continued disruption to Gulf energy exports could drive oil prices to $150 a barrel within two to three weeks.<\/p>\n