Wall Street Plunges Amid Middle East Tensions and Rising Oil Prices

Wall Street's major indexes dropped over 1% amid soaring oil prices and heightened Middle East tensions. The announcement of Mojtaba Khamenei as Iran's supreme leader fueled uncertainty, impacting travel and banking stocks. While energy sectors saw minor gains, investors turned to the U.S. dollar as a safe haven.

Wall Street's main indexes tumbled over 1% on Monday, driven by a spike in oil prices and escalating tensions in the Middle East. As Iran appointed Mojtaba Khamenei as its new supreme leader, geopolitical uncertainties deepened, prompting investor anxiety and inflation fears.

Crude oil prices surged to nearly $120 a barrel before easing off as global powers, including G7 members and Saudi Arabia, convened to discuss measures to cap energy prices. This situation raised concerns of potential stagflation amid recent weakening in the U.S. jobs market.

The sell-off particularly impacted travel and banking stocks, with major airlines and cruise companies experiencing significant drops. However, energy companies made minor gains due to rising oil and gas prices. Meanwhile, global central banks, notably the Federal Reserve, faced increased pressure in balancing inflation expectations and economic recovery goals.

(With inputs from agencies.)