BANGKOK — Global markets appeared to take the U.S. strike against nuclear targets in Iran in stride as investors watched to see how Iran will react.
The price of oil initially jumped more than 2% but fell back slightly on Monday. U.S. stock futures and most Asian shares declined.
The big question is what Iran will do, analysts said, while the U.S. military's strike on three Iranian sites raised urgent questions about what remains of Tehran's nuclear program.
"I believe what we are thinking is or the thinking is that it is going to be a short conflict. The one big hit by the Americans will be effective and then we'll get back to sort of business as usual, in which case there is no need for an immediate, panicky type of reaction,'' said Neil Newman, managing director of Atris Advisory Japan.
The price of Brent crude oil, the international standard, was up 1.2% at $77.94 a barrel. U.S. crude also jumped, gaining 1.3% to $74.82 a barrel.
The attacks Saturday raised the stakes in the war between Israel and Iran, and the futures for the S&P 500 and the Dow Jones Industrial Average slipped 0.3%. The Nasdaq future contract fell 0.5%. Treasury yields were little changed.
The conflict began with an Israeli attack against Iran on June 13 that sent oil prices yo-yoing and rattled other markets.
Iran is a major producer of oil and also sits on the narrow Strait of Hormuz, through which much of the world's crude passes. Closing off the waterway would be technically difficult to pull off but it could severely disrupt transit through it, sending insurance rates spiking and making shippers nervous to move without U.S. Navy escorts