Wall Street driven lower by US-Iran escalation

US stock indices declined during Monday’s trading session amid geopolitical concerns in the Middle East linked to the military escalation between the United States and Iran.

The US–Israeli strikes reportedly led to the killing of Iranian Supreme Leader Ayatollah Ali Khamenei, in a development seen as a major turning point for the Islamic Republic and one of the most significant events since 1979.

In response, Iranian officials vowed strong retaliation, fueling fears that the conflict could spread further across the region, particularly as explosions were reported in several cities across Gulf countries.

US President Donald Trump said in an interview with CNBC that US military operations in Iran are progressing ahead of schedule.

In the oil market, analysts believe price direction will depend on whether the fighting leads to disruptions in navigation through the Strait of Hormuz — the world’s most critical chokepoint for crude oil flows. Any sustained interruption there could strongly impact global energy markets and reignite inflationary pressures.

Meanwhile, concerns that expanding automation could undermine business models and trigger waves of layoffs continue to cast a shadow over broader economic outlooks.

As for trading performance, the Dow Jones Industrial Average was down 0.5% (about 265 points) at 48,713 as of 16:36 GMT. The broader S&P 500 declined 0.4% (around 27 points) to 6,851, while the Nasdaq Composite fell 0.2% (roughly 45 points) to 22,618.