Geopolitical Tensions Spike as US Troops Deploy to Iran, Oil Hits $100

US stock markets extended a significant downward trend on Monday, driven by heightened geopolitical instability in the Middle East. The selloff follows the deployment of additional American military personnel to Iran, sparking fears of a broader conflict and increased regional volatility. The escalation has had an immediate impact on energy markets, with crude oil prices climbing to the $100 mark. This combination of rising energy costs and geopolitical uncertainty has triggered the most severe weekly decline for equities since 2022, as investors price in the risks of supply disruptions. Market participants reacted sharply throughout Monday afternoon, with the downward pressure on stocks intensifying as the scale of the military movement became clearer. The surge in oil prices acts as a significant headwind for global economic growth and corporate margins. While some dip buyers have attempted to enter the market during the decline, the prevailing sentiment remains cautious. Traders are currently weighing the potential for further military escalation against the attractiveness of lower equity valuations in a high-risk environment.