Dow, Nasdaq, S&P all falling as oil spikes briefly over $120 per barrel

Wall Street futures followed global markets lower early Monday and oil prices briefly spiked to nearly $120 per barrel as the Iran war intensified, threatening production and shipping in the Middle East.

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.

Global markets also took a beating, with Japan’s benchmark Nikkei 225 index plunging more than 5% and markets across Europe losing between 2% and 3%.

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.

“The 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,” Stephen Innes of SPI Asset Management said in a commentary.

Surging oil and gas prices, if they persist, could ripple across the globe, further complicating matters for countries still........

© Fortune