US stocks tumble as Iran threatens to close oil route
US stock futures dropped sharply after US-Israeli airstrikes on Iran, with Iran hitting back at oil tankers and warning ships to avoid the Strait of Hormuz—a route that carries about 20% of the world's oil.
President Trump has made regime change a stated goal and said the bombing will continue 'as long as necessary' to achieve US objectives.
Oil prices could spike to $100 a barrel
If Hormuz stays closed, oil prices could spike to $100 a barrel, making everyday goods more expensive and putting Fed rate cuts on hold.
Stock markets worldwide are feeling the heat: Dow futures fell nearly 1%, Japan's Nikkei initially fell more than 2% intraday and closed 1.4% lower, and India's Sensex fell about 1.8%.
Even with missile threats, an analyst said most Gulf sovereigns carry strong balance sheets.