Oil jumps, U.S. markets open higher as Iran war rounds one month

Global oil prices jumped overnight and U.S. stock indexes gained after a weekend that saw Iran-backed Houthi militants launch ballistic missiles at Israel.

Global oil prices jumped overnight and U.S. stocks indexes opened higher, after a weekend that saw Iran-backed Houthi militants launch ballistic missiles at Israel and 3,500 additional U.S. troops arrive in the Middle East as the conflict rounded one month.

Brent crude oil, the global benchmark, surged 2.7% to nearly $116 a barrel, the highest level since the conflict started, while U.S. West Texas Intermediate crude climbed 2.2% to about $102 a barrel.

Despite the higher oil prices, all three major U.S. stock indexes began the trading day on a positive upswing after posting steep losses late last week.

While some traders appeared to bet that the sell-off sparked by the war had reached a low-point for now, investors also increased their purchases of U.S. government bonds over fears of an economic slowdown. This may have also been supporting stocks, as traders now expect slightly lower interest rates from the Federal Reserve.

Traders also appeared to have been placated somewhat by new remarks from President Donald Trump, who told reporters aboard Air Force One late Sunday that the U.S. “will make a deal” with Iran and that negotiations between the two countries are going well.