By ELAINE KURTENBACH and MATT OTT, AP Business Writers<\/p>\n
Wall Street futures followed global markets lower early Monday and oil prices briefly spiked<\/a> to nearly $120 per barrel as the Iran war<\/a> intensified, threatening production and shipping in the Middle East.<\/p>\n Futures for the S&P 500, Nasdaq and Dow Jones Industrial Average all fell more than 1% before the opening bell after retreating more than 2% late Sunday.<\/p>\n Global markets also took a beating, with Japan\u2019s benchmark Nikkei 225 index plunging more than 5% and markets across Europe losing between 2% and 3%.<\/p>\n Shares of major U.S. airlines continued their descent as spiking fuel prices are projected to eat into their profits. Delta, American and United all fell more than 3% in premarket trading, adding to what was already double-digit losses since the U.S. and Israel launched their attack on Iran more than a week ago.<\/p>\n \u201cThe market woke up to the sound every macro trader dreads. The oil alarm bell. And this time it was not a polite chime. It was a fire siren,\u201d Stephen Innes of SPI Asset Management said in a commentary.<\/p>\n Surging oil and gas prices, if they persist, could ripple across the globe, further complicating matters for countries still adjusting to higher tariffs on exports to the United States under President Donald Trump.<\/p>\n As of 7:45 a.m. EDT, the price for a barrel of Brent crude was $104.94 a barrel. U.S. benchmark crude was trading at $103.27. Both were more than 13% above their closing prices Friday.<\/p>\n Senior officials of Southeast Asian countries were meeting this week in Manila, the Philippines, where they were expected to discuss ways to counter the shock from higher energy costs.<\/p>\n \u201cOil prices will reach a peak at some point \u2013- maybe they already have, maybe there\u2019s more to come -\u2013 but they are likely to fluctuate at elevated levels for weeks, perhaps months,\u201d Ipek Ozkardeskaya of Swissquote said in a commentary. \u201cEventually -\u2013 even if the war persists \u2013- energy prices will likely come down. But during this period, high energy prices will revive inflation globally and weigh notably on growth.\u201d<\/p>\n The last time oil rose above $100 a barrel was shortly after Russia invaded Ukraine in 2022.<\/p>\n The Iran war, now in its second week, has ensnared countries and places that are critical to the production and movement of oil and gas from the Persian Gulf.<\/p>\n A Chinese special envoy to the Middle East, Zhai Jun, called for an end to the attacks and said strikes on non-military targets and civilians should be condemned. Meanwhile, South Korean President Lee Jae Myung warned against hoarding, panic buying and collusion between refiners and gas stations.<\/p>\n \u201cPlease respond proactively to the growing volatility in the financial and foreign exchange markets, which are the lifeblood of our economy,\u201d Lee said. He said the government would cap fuel prices.<\/p>\n