Wall Street opened lower on Monday as the US-Israeli military campaign against Iran escalated across the Middle East, sending oil prices sharply higher.About 20 minutes into trading, the Dow Jones Industrial Average was down 0.7 percent at 48,661.35. The S&P 500 lost 0.5 percent to 6,845.44, while the tech-heavy Nasdaq Composite fell 0.4 percent to 22,575.52.

The Israeli military announced the start of a new “broad strike” on Tehran, while Gulf monarchies threatened retaliation and oil tankers were attacked off Oman, stoking investor concern. Oil prices surged roughly eight percent in early trading.“If oil prices stay high, that means inflation could go higher,” said Adam Sarhan, adding that sustained elevated prices could delay or halt further Federal Reserve interest rate cuts. He also warned, “If this conflict spreads (…) and it causes extended turmoil in the Middle East, that’s not going to be a good sign for the market.”Despite the geopolitical tensions, some analysts noted that the market’s response had been relatively contained. Patrick O’Hare of Briefing.com said, “The major indices will open lower, but they won’t open lower in proportion to the weight of the combat news, because participants are not convinced yet the military action will fuel disarray for the global economy.”Sector-wise, airline and travel stocks retreated as investors weighed risks to global mobility, while defense companies and petroleum producers saw gains on expectations of increased demand and geopolitical premiums.