Oil prices rose and stock futures were little changed late Sunday following a weekend of fighting between the United States and Iran that left at least three U.S. military personnel dead in Jordan and Iraq.
The United States has also begun sending more fighter jets to the Middle East, signaling that the war could soon escalate even further, a worrying sign for oil and stock markets.
Not only has maritime traffic through the Strait of Hormuz decreased significantly, but regional energy infrastructure is once again being targeted. Iran has damaged several sites in Kuwait in recent days, including oil and power facilities and water desalination plants. The United States, for its part, has expanded its attacks to Iranian bridges and other critical infrastructure.
The conflict is escalating at a vulnerable time for energy markets. Oil stocks are now lower than they were when U.S.-Israeli strikes on Iran began in late February, and Ukrainian attacks have severely damaged Russian refineries, reducing supplies of transportation fuels like diesel.
