Wall Street opened in the red as crude oil prices surged, growing fears of stagflation in the United States. Analyst Tom Essaye points out in his daily Sevens Report: «If markets believe oil prices will stay at $100 a barrel or more for weeks or even months, this will affect stocks». Ten minutes after the opening of the New York exchange, the Dow Jones Industrial Average was down 1.33% at 46,870 points; the S&P 500 index fell 1.24% to 6,656 units, and the tech-heavy Nasdaq lost 1.18% to 22,122. Meanwhile, West Texas Intermediate (WTI) crude oil rose 10% to $100.20 a barrel, with traders bracing for the economic consequences of the war between the U.S. and Israel with Iran. At 9:30 local time (13:30 GMT), WTI futures contracts for April delivery were up $9.55 from Friday's close. Middle Eastern countries have reduced production amid the ongoing conflict in the region, leading to reports that the G7 countries, including the U.S., plan to discuss a coordinated release of oil from their strategic reserves. According to specialized media, investors interpreted the rise in crude oil as a sign that the U.S. could be entering stagflation.
