Wall Street opens lower again: attention remains high on the Gulf

Stock markets opened lower on Wall Street on Friday, while investors continue to closely monitor the evolution of the conflict between the United States and Iran. Indeed, the main indices start this way they conclude another negative week.

To be more precise,the Dow Jones Industrial Average lost 279 points, equal to about 0.6%. The S&P 500 also fell 1%, while the Nasdaq Composite recorded a sharper 1.3% decline.

Escalation between Iran and Israel

The losses in the markets come after a new wave of tensions in the Middle East. Overnight, Iran and Israel exchanged attacks, while Tehran also hit energy infrastructure in the Gulf area. According to The Wall Street Journal, citing US government sources, the Pentagon decided to send thousands of additional Marines to the region,

further increasing tension.

Impacts on oil and markets

Analysts believe that a possible direct involvement of troops on the ground could prolong instability. Considering this scenario, markets could face weeks characterized by high oil and fuel prices. Investors, in fact, remain extremely sensitive to any news regarding energy infrastructure in the region.According to Mayfield, stock markets have not yet fully incorporated the risk associated with these events, leaving room for further possible declines.

Trump's criticism of NATO

Meanwhile, Donald Trump has continued to criticize NATO, calling it a 'paper tiger' without the support of the United States. Hence, Trump argued that, although the military situation is now under control, allied countries complain about rising oil prices but do not collaborate to keep the Strait of Hormuz open, a strategic passage that directly affects global energy costs.