US stocks slide as oil tops $100

US stocks fell on Monday as a sharp jump in oil prices fueled concern about a deepening supply squeeze linked to conflict in the Middle East. The Dow Jones Industrial Average (DJIA) dropped more than 1.7%, or over 800 points, while the S&P 500 (SPX) slid 1.5% and the Nasdaq Composite lost 1.3% in afternoon trade, according to reports later in the session.

Earlier in the day, losses had been more limited, with the Dow, S&P 500 (SPX), and Nasdaq each down about 0.8% after opening declines. The indices had already faced heavy selling pressure overnight, when futures for the Dow fell more than 1,000 points and all three major benchmarks were down more than 2% in out-of-hours trading.

Monday’s downturn followed a difficult week for equities. The Dow had dropped roughly 3% over the prior week, its steepest weekly decline since tariff concerns from the Trump administration unsettled markets in April 2025.

Crude prices surged past $100 a barrel after spiking around 25% late Sunday to briefly top $119, a level not seen since 2022. The jump came as conflict in Iran prompted crude‑producing countries to cut output, compounding constraints from the virtual closure of the Strait of Hormuz shipping corridor.

Kuwait confirmed unspecified production cuts, while Iraqi oil output was reported to have plunged about 70%. As trading stabilized on Monday, West Texas Intermediate futures were around $99 a barrel and Brent crude was trading above $102, both still well above recent levels.

The oil price surge added to investor anxiety already heightened by geopolitical risks. On Sunday, former President Donald Trump had suggested that higher energy costs were “a very small price to pay” for security, a remark that media reports said unsettled some market participants before prices later eased from their peak.

In response to the tightening crude market, ministers from the G7 leading economies were set to meet on Monday to discuss a possible joint release of petroleum from International Energy Agency reserves, according to media reports.

The United States and two other countries were reported to support such a move. Hopes that coordinated action could ease the supply crunch helped markets trim some of the steepest overnight losses, even as oil prices remained elevated and equity indexes stayed in negative territory.

Investors are now turning their attention to upcoming US economic data that could influence expectations for inflation and monetary policy. The Consumer Price Index is due on Wednesday, followed by the Personal Consumption Expenditures price index on Friday.

Neither report will reflect the latest spike in oil prices, but both are being closely watched for signs of existing price pressures. At the same time, corporate earnings season continues, with results from Oracle (ORCL) and Adobe (ADBE) highlighted as key reports for markets this week.