Dow, Nasdaq fall as oil prices jump on Iran concerns

US stocks opened on a mixed note on Monday, June 1, as a sharp rise in oil prices and escalating geopolitical tensions in West Asia weighed on investor sentiment, while gains in technology shares helped limit broader market losses.

The Dow Jones Industrial Average slipped 116 points, or 0.2%, at the open on Monday, while the S&P 500 and Nasdaq Composite were little changed, trading near the flatline.

Investor focus remained firmly on developments in West Asia after reports suggested Iran had suspended talks with the United States amid ongoing regional hostilities.

The uncertainty pushed crude prices sharply higher, with West Texas Intermediate crude rising about 6% to around $92 a barrel and Brent crude climbing nearly 7% to roughly $97 per barrel.

Markets entered June after a strong May rally that pushed major indices to record highs. However, renewed geopolitical risks and concerns over the future of US-Iran negotiations prompted a cautious start to the month.

Reports of fresh military exchanges involving the US and Iran, along with continued Israeli operations in Lebanon, added to market uncertainty and supported the move higher in energy prices.