Trump Vows Retaliation as 10th Night of US Strikes on Iran Rattles Wall Street
U.S. stocks fell for a third straight session on Monday as the U.S.-Iran war entered its tenth consecutive night of strikes, oil climbed back toward $90 a barrel, and bitcoin held near $65,000 per coin while equities struggled to find a footing.
The S&P 500 closed at 7,443.28, down 14.41 points, or 0.2%. The Dow Jones Industrial Average dropped 307.16 points, or 0.59%, to 51,839.26. The Nasdaq Composite slipped just 12.17 points, or 0.05%, to 25,508.07, holding up better than the broader market as tech shares absorbed less of the damage.
All three indexes opened higher in the morning, but gains faded as headlines from the Middle East took over investor attention. Traders are also bracing for a heavy earnings week, with Tesla, Alphabet, Intel, and several major banks set to report.
U.S. Central Command said American forces carried out their 10th straight night of strikes on Iran early Monday, part of a campaign aimed at forcing open the Strait of Hormuz after repeated attacks on shipping. The Pentagon has confirmed 17 U.S. troops killed and roughly 430 wounded since the war began.
President Donald Trump pushed for continued retaliation on Truth Social, writing: “Every time Iran kills an American Soldier they will pay for that killing many times over!” He also addressed the toll in an interview with the New York Post, calling recent troop deaths a “shame” while standing behind the mission.
Brent crude climbed to $88 a barrel, up from near $80 earlier this month, as fighting around the Strait of Hormuz continues. The strait normally carries about 20% of the world’s seaborne oil and liquefied natural gas, and transits have dropped sharply. U.S. gas prices have climbed back to a national average of $4 a gallon. Higher energy costs create a direct problem for the Federal Reserve, which has been watching for inflation to cool.
Energy and materials shares held up better than the rest of the market on Monday, while industrials and financials took the brunt of the selling. The Russell 2000 index of small companies fell about 0.7% as smaller firms felt the pinch of higher borrowing costs and a shakier economic outlook.
Bitcoin traded around $65,083 to $65,320, up about 0.65% over 24 hours, with a market capitalization near $1.306 trillion. The token touched three-week highs earlier in July on softer inflation data before giving back some gains. The contrast between bitcoin’s small gain and the stock market’s decline reflects a pattern where bitcoin acts more like a hedge during geopolitical stress. Spot bitcoin ETFs have continued to see inflows, and institutional buyers have kept adding exposure.
The current situation can be compared to earlier Gulf conflicts, but this time bitcoin’s maturity offers a new asset for investors looking to sidestep both stocks and the dollar. Traders should expect volatility to persist as long as the Strait of Hormuz remains contested and the Houthis’ blockade continues. A congressional hearing on the cost of the war is expected soon, and diplomatic channels through Qatar remain open. For now, investors are watching corporate earnings and any sign that the conflict is easing.