West Texas Intermediate (WTI) crude oil futures, closely followed by the United States Oil Fund USO, surged 3.6% to close at $79.60 per barrel on Monday amid rising tensions in the Middle East.
This marked the fifth consecutive day of gains and the second-strongest one-day surge year-to-date as the prospect of a war between Israel and Iran has stoked fears of significant disruptions to global oil supplies.
The tensions have been exacerbated by reports that Iran, along with its Lebanese proxy Hezbollah, is considering retaliatory action against Israel following the death of Ismail Haniyeh, a top Hamas leader, in Tehran on July 31.
US Military Moves To Reinforce Middle East Presence
In response to the rising risk of a broader regional conflict, the Pentagon has significantly ramped up its military presence in the region. On Monday, CNN reported that U.S. Defense Secretary Lloyd Austin ordered the deployment of a carrier strike group equipped with F-35 jets and additional forces to deter potential Iranian aggression toward Israel.
On Sunday, the Pentagon disclosed that it had ordered the nuclear-powered submarine USS Georgia, armed with cruise missiles, into Middle Eastern waters.
The USS Georgia had recently been operating in the Mediterranean Sea, completing training exercises near Italy. The movement of U.S. missile submarines is typically shrouded in secrecy.
Escalating Violence In Gaza
The situation in Gaza remains dire. On Saturday, Israeli airstrikes targeted a school building in Gaza City, killing hundreds of people, according to Palestinian health authorities.
The Israeli Defense Forces (IDF) on its official account on X said the building housed 31 terrorist from Hamas and Islamic Jihad.
LTG Herzi Halevi, IDF chief of the general staff, stressed the importance of maintaining a high level of preparedness for both offensive and defensive operations.
US Defense Stocks Moving On Monday
Despite the escalating tensions, U.S. defense stocks, tracked by the iShares U.S. Aerospace & Defense ETF ITA, closed relatively flat on Monday, but are trading around 3% below record highs.
Among the top performers were:
| Name | 1-day %chg |
| Curtiss-Wright Corporation CW | 2.55% |
| Huntington Ingalls Industries, Inc. HII | 1.67% |
| Northrop Grumman Corporation NOC | 1.53% |
| AeroVironment, Inc. AVAV | 1.14% |
| Lockheed Martin Corporation LMT | 0.95% |
Read Next:
- US Stocks Trim Gains As Iran Mulls Attack On Israel; Gold, Oil Rally: What’s Driving Markets Monday?
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