The Dow Jones was down 0.5 per cent, while the S&P 500 and Nasdaq were both down around 0.35 per cent in morning trading.
Meanwhile, a 10 per cent jump in oil prices lifted energy stocks, with Chesapeake Energy Corp rising 17 per cent, Denbury Resources rising 26 per cent and California Resources rising 15 per cent at one stage
Conoco Phillips was up 5.6 per cent, Exxon Mobil was up 1.6 per cent and Chevron was up 1.8 per cent. Marathon Oil and Devon Energy gained more than eight per cent each.
In a morning note to clients, JP Morgan estimated crude could jump by anything between $5 and $30 a barrel in the months ahead.
“While the attacks present yet another headwind for a global economy that is already buffeted by deteriorating manufacturing activity and elevated trade tensions, we don’t believe that this short-term disruption to oil production will trigger a global recession.”
UBS Global Wealth Management chief investment officer Mark Haefele said: “While the attacks present yet another headwind for a global economy that is already buffeted by deteriorating manufacturing activity and elevated trade tensions, we don’t believe that this short-term disruption to oil production will trigger a global recession.”
Meanwhile in London, BP and Shell led the FTSE 100 risers after the attack by Yemen’s Houthis knocked out half of Saudi Arabia’s supply.
“The attacks led to the single worst sudden disruption ever for oil markets, surpassing the loss of Kuwaiti and Iraqi petroleum supply in August 1990, when Saddam Hussein invaded his neighbour,” analysts at Deutsche Bank said this morning.
