US stocks decline as oil prices surge on renewed US-Iran strikes

Wall Street ended in red on Monday as the US and Iran exchanged fire for the first time in a month, leading to a rise in crude oil prices.

The Dow Jones Industrial Average slipped 0.70% to 53,185.90, while the S&P 500 fell 0.33% to 7,686.14. The NASDAQ Composite declined 0.12% to 26,370.89.

Shares of Amazon fell 2.5%, while Alphabet, Google's parent company, saw its stock slide 2%. Nike, Microsoft, Coca-Cola, and Boeing were also down 1.36%, 1.21%, 1.10%, and 0.97%, respectively.

On Sunday, US Central Command said that it took limited, precise action against Iran's IRGC minelaying attempt in the Strait of Hormuz. "In essence, Iran created the threat and the U.S. military eliminated it to protect civilian mariners, commercial shipping, and the free flow of global commerce," it said.

Taking to Truth Social, US President Donald Trump said, "Iran is officially a Failed Nation. IT IS DEAD! They have no Navy, they have no Air Force, they have no currency, they are not paying their soldiers or police, Inflation is at 300%, and their leadership is in total disarray and incapable of properly representing the country. The only thing they have is FAKE NEWS from the USA, a willingness to kill their protesters (now over 100,000 people dead. They must be tried for war crimes against humanity!)."

Brent Crude, the international standard, advanced 0.45% to ₹90.90 per barrel. West Texas Intermediate (WTI) rose 0.78% to ₹86.36 a barrel.

On Friday, Federal Reserve Chair Kevin Warsh offered no signal on US interest rates. However, he stated that inflation remained too high and that policymakers should keep an eye on prices.

"Inflation is running above our 2% target. So the Fed's predominant focus right now should be on prices," Warsh said.

Stocks that ended in green include Tesla (5.5%), SanDisk Corporation (5.5%), Walmart (1.72%), NVIDIA (1.48%) and Salesforce (0.60%), among others.