economy
US Markets See Biggest Slump Since Start of US-Israel War on Iran
Dow closed 450 points down and S&P dipped 1.7% while Nasdaq fell 2.3% into correction territory
TL;DR
- US markets experienced their biggest slump since the start of the US-Israel war on Thursday.
- The Dow closed 450 points down, the S&P 500 dipped 1.7%, and the Nasdaq fell 2.3% into correction territory.
- Oil prices have surged since the conflict began, with Brent crude around $107 a barrel and US crude at $93 a barrel.
- Donald Trump made contradictory statements regarding oil prices, stating they hadn't risen as much as he expected and predicting they would fall.
- Trump also provided conflicting information about negotiations with Iran, initially issuing a warning and later stating "very substantial talks" were occurring.
- The White House announced an extension of the pause on Iranian energy infrastructure strikes by 10 days.
- The conflict is expected to increase global inflation, with estimates suggesting US inflation will average 4.2% this year.
- Higher oil prices are a key factor in the projected inflation increase, with potential impacts on the price of fertilizer.