President Joe Biden’s planned Wednesday visit to Israel, alongside broader diplomatic efforts, were credited with soothing, but far from dispelling, investor fears that the country’s war against Hamas could spark a wider regional conflagration involving Iran.
The Dow Jones Industrial Average DJIA eked out a tiny gain Tuesday, while the S&P 500 SPX saw a marginal decline. Major U.S. stock indexes rose Monday after slumping at the end of last week. Other countries in the region fear the potential economic disruption that could be caused by a wider conflict, Krosby said, noting that large spikes in energy prices tend to be followed by plunges if they slam global economic growth — a development that would be unwelcome among the region’s oil producers. Meanwhile, Biden must worry about the potential for a surge in gasoline prices ahead of next year’s presidential election.