(Updated to add new information.)
Major U.S. stock indexes closed lower while oil prices climbed on Tuesday amid worries about escalating tensions in the Middle East.
Iran launched missiles at Israel, according to Israel Defense Forces (IDF). The IDF’s announcement came just hours after a U.S. official said Iran was preparing imminently to launch a ballistic missile attack against Israel. The official said the U.S. was actively supporting Israel in its preparations to defend against the attack and warned any direct attack on Israel will carry “severe consequences for Iran.”
Worries a wider conflict in the Middle East could dampen the world’s oil supply pushed up oil prices, with WTI crude up 3.59% at 4:25 p.m. ET, economists said. Iran accounts for about 4% of global oil output.
Nervousness also triggered some short-term selling of U.S. stocks and buying of so-called safe-haven assets like gold and U.S. treasuries. The broad S&P 500 index ended down 0.93% at 5,708.75 and the Dow off 173.18 points, or 0.41%, to 42,156.97. The tech-heavy Nasdaq shed 1.53% to finish at 17,910.36. Gold was last up 0.77% at 4:23 p.m. ET and the 10-year yield was down fractionally. Treasury yields move in the opposite direction of Treasury prices.
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However, analysts noted that markets appeared to still be calm, with investors likely waiting for a clearer picture of what’s unfolding overseas before making any major portfolio changes, they…
