U.S. equities rebounded on Monday after a turbulent period in global markets, while oil prices swung sharply following a brief spike above the $100-per-barrel mark. The volatility came as investors continued to react to escalating tensions surrounding the conflict involving Iran and concerns over potential disruptions to global energy supply.

Crude oil markets experienced dramatic moves over the past 24 hours. U.S. crude surged close to $120 per barrel late Sunday when trading opened, reflecting fears that the conflict could threaten energy flows from the Middle East. However, prices gradually retreated during Monday’s session, settling near $95 per barrel before falling further to around $86 by the close of U.S. trading. Brent crude followed a similar pattern, briefly approaching $120 before pulling back.

Part of the late-day decline came after comments from U.S. President Donald Trump, who suggested in an interview that the conflict could be nearing its conclusion. The remarks helped calm market nerves and triggered a sharp reversal in oil prices.

Despite the earlier uncertainty, U.S. stocks managed to finish the session higher. The Dow Jones Industrial Average gained about 239 points, or roughly 0.5%, recovering from an earlier drop of more than 800 points. The S&P 500 advanced 0.83%, while the Nasdaq Composite climbed 1.38% as investors moved back into risk assets after oil prices retreated.

Oil had surged earlier amid fears of a broader energy shock. Last week alone, U.S. crude jumped roughly 36% while Brent rose about 27%. The rally intensified over the weekend when reports suggested additional production disruptions in the Gulf region and heightened geopolitical tensions.

Markets were also watching discussions among G7 finance ministers regarding potential measures to stabilize oil markets. Officials said they were prepared to take action if necessary, including the possible release of strategic petroleum reserves, although no final decision has been made.

Concerns about the global energy supply remain centered on the Strait of Hormuz, a critical shipping route through which roughly one-fifth of the world’s oil consumption passes. Any prolonged disruption to traffic in the waterway could significantly impact energy prices and global economic stability.

The recent surge in oil has also raised worries about inflation returning at a time when economic growth already appears fragile. A weaker-than-expected U.S. jobs report released last week added to uncertainty about the health of the labor market, complicating the outlook for policymakers and investors.

Global equities reflected the cautious mood. Japan’s Nikkei 225 dropped more than 5% on Monday, while Europe’s Stoxx 600 index also moved lower after sharp losses the previous week.

Meanwhile, safe-haven assets saw mixed movements. U.S. Treasury yields edged slightly lower following the weak employment data, while the U.S. dollar paused after a strong rally earlier in the month as investors sought safety amid geopolitical risks.

For now, markets remain highly sensitive to developments in the Middle East. Until tensions ease and energy flows stabilize, volatility across commodities and equities is likely to persist, with investors closely monitoring headlines for any sign of escalation or de-escalation.

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