Middle East Strikes Rattle Markets as Oil Jumps

Stock futures fell sharply on Monday after the U.S. and Israel attacked Iran over the weekend.

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Major Indexes: S&P 500 lower, Nasdaq lower, Dow lower, Russell 2000 lower

Leading Sectors: Energy, Industrial

Lagging Sectors: Consumer Discretionary, Financial, Technology, Communication Services, Health Care, Real Estate, Utilities, Consumer Staples

Defense Stocks: Defense companies moved higher after a joint U.S. and Israeli attack on Iran over the weekend led to retaliation and increased tensions in the Middle East. Lockheed Martin (LMT), Northrop Grumman (NOC), and drone maker AeroVironment (AVAV) advanced as investors anticipated higher military spending.

Oil Stocks: Energy companies gained after U.S. and Israeli strikes on Iran raised concerns about potential disruptions to global oil production and transportation. Exxon Mobil (XOM), Chevron (CVX), and ConocoPhillips (COP) rose as oil prices climbed, with Brent crude reaching a new 52 week high above 78 dollars per barrel.

Tanker Stocks: Oil shipping companies rallied following military strikes in the Middle East, as traders bet that higher oil prices and possible supply shifts could increase demand for tanker services. Frontline (FRO), DHT Holdings (DHT), and International Seaways (INSW) all moved higher.

Travel Stocks: Travel and airline companies declined as rising oil prices and escalating tensions between the U.S. and Iran increased concerns about higher fuel costs and weaker travel demand. Expedia (EXPE) and Booking Holdings (BKNG) fell, while Delta Air Lines (DAL), American Airlines (AAL), and United Airlines (UAL) also traded lower.

Berkshire Hathaway (BRK-B): Berkshire Hathaway reported that fourth quarter operating earnings declined sharply, mainly due to weaker results in its insurance business. Total earnings, which include gains or losses from its stock investments, also slipped compared with the same period last year.

Norwegian Cruise Line (NCLH): Norwegian Cruise Line reported fourth quarter adjusted earnings per share of 0.28 dollars on 2.24 billion dollars in revenue, slightly above its previous guidance. The company also issued 2026 adjusted earnings guidance of 2.38 dollars per share. Shares moved lower following the report.

Carnival Corp. (CCL): Carnival shares fell as investors reacted to escalating conflict involving Iran, raising concerns about higher energy costs and softer tourism demand.

ADT (ADT): ADT reported fourth quarter revenue of 1.28 billion dollars, up modestly from a year earlier but below market expectations. Adjusted earnings per share of 0.23 dollars matched analyst estimates. The stock declined after the results.

Venture Global (VG): Venture Global reported fourth quarter revenue of 4.4 billion dollars and net income of 1.1 billion dollars. The company issued 2026 adjusted EBITDA guidance of 5.20 to 5.80 billion dollars and reaffirmed that its Plaquemines Phase I project remains on track for completion in the fourth quarter of 2026. Shares traded higher following the update.

AES (AES): AES agreed to be acquired for 10.7 billion dollars by a consortium of investors including BlackRock’s Global Infrastructure Partners and EQT. The deal comes as demand for electricity rises, partly driven by the buildout of AI data centers. Shares moved lower.

(Stocks showing elevated volume and notable price movement)

Gainers: -

Losers: ZG

None.



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