The Iran crisis shakes stocks again

For the first time in weeks, uncertainty related to the Middle East is shaking the stock market.

Wall Street remained lower on Monday as tensions between Iran and the United States escalated again. On Monday, Iran attacked the United Arab Emirates and cargo ships in the Strait of Hormuz. The US military protected several commercial ships from Iranian attacks, the Wall Street Journal reports.

President of the United States Donald Trump announced late Sunday local time about the new “Project Freedom” project, in which the country’s military forces provide support to ships stuck in the Persian Gulf. According to Iran, ships passing through the Strait of Hormuz without Iran’s permission take great risks.

According to market commentators, the most likely outcome is still that Iran and the United States reach some sort of agreement.

The S&P 500, which broadly tracks large companies, fell 0.4 percent. The technology-focused Nasdaq weakened by 0.2 percent. The flagship Dow Jones index fell 1.1 percent, while the Russell 2000 index, which tracks small companies, gained 0.6 percent.

On the government bond market, the interest rate on the US 30-year government bond crossed the five percent mark on Monday.

Oil prices were on the rise on Monday. The price of Brent reference quality was around 114 dollars and the price of WTI crude oil was around 105 dollars per barrel.

Last week The S&P 500 index and the Nasdaq recorded their fifth consecutive week of gains, buoyed by the strong US economy and strong interim results of companies, as well as hopes for peace.