US stocks close lower as Middle East tensions escalate

US stocks closed lower in the first session of the week, as oil prices climbed amid escalating tensions in the Middle East after the US-Iran ceasefire expired without an agreement to extend the memorandum of understanding (MoU).

At Monday’s close, the Dow Jones Industrial Average fell 0.51%, or 272 points, to 53,459.

The broader S&P 500 declined 0.52%, or 40 points, to 7,745, while the Nasdaq Composite fell 0.32%, or 84 points, to 26,644.

The STOXX Europe 600 fell 0.22% to 656.

The UK’s FTSE 100 edged down 0.28% to 10,720, Germany’s DAX fell 0.38% to 26,338, and France’s CAC 40 decreased 0.66% to 8,579.

Japan’s Nikkei 225 rose 0.75% to 69,220, while the broader TOPIX fell 0.3% to 4,184.

Brent crude futures for October delivery rose 2.65%, or $2.35, to $90.87 a barrel.

US Nymex crude futures for September delivery climbed 2.55%, or $2.1, to $84.5 a barrel.

Gold futures for December delivery rose 0.82%, or $36.4, to $4,473.7 an ounce.

What’s behind the market moves?

Investors grew more cautious over escalating Middle East tensions, while rising oil prices brought inflation risks back into focus. The rise in long-term bond yields also weighed on risk appetite, despite continued momentum in technology stocks.