US stocks have dropped to their lowest levels since August, as rising geopolitical tensions and higher oil prices weigh on investor sentiment.
The S&P 500 fell around 0.8% to 6,426, while the Nasdaq Composite declined 1.1% to 21,179, extending recent losses.
At the same time, energy markets are moving in the opposite direction. Brent crude rose 2.1% to around $110 a barrel, with WTI up 3.2% to above $97, as tensions in the Middle East continue to escalate.
Analysts suggest markets are becoming less reactive to statements from Donald Trump, with investors increasingly waiting for concrete developments rather than rhetoric.
Despite occasional pullbacks in oil prices following diplomatic signals, the moves have become short-lived and less pronounced, indicating that traders are growing more cautious and less convinced by headline-driven optimism.
With ongoing military activity and uncertainty around supply risks, markets remain highly sensitive—though increasingly sceptical—towards developments in the conflict.
