Oil prices leap 7% and US stocks slump more than 1% on worries about the crude market

NEW YORK (AP) — Oil prices leaped, and stocks slumped Friday on worries that escalating violence following Israel’s attack on Iranian nuclear and military targets could damage the flow of crude around the world, along with the global economy.

The S&P 500 sank 1.1% and wiped out what had been a modest gain for the week. The Dow Jones Industrial Average dropped 769 points, or 1.8%, and the Nasdaq composite lost 1.3%.

The strongest action was in the oil market, where the price of a barrel of benchmark U.S. crude jumped 7.3% to $72.98. Brent crude, the international standard, rose 7% to $74.23 for a barrel.

Iran is one of the world’s major producers of oil, though sanctions by Western countries have limited its sales. If a wider war erupts, it could slow the flow of Iran’s oil to its customers and keep the price of crude and gasoline higher for everyone worldwide.

Beyond the oil coming from Iran, analysts also pointed to the potential for disruptions in the Strait of Hormuz, a relatively narrow waterway off Iran’s coast. Much of the world’s oil that's been pulled from the ground moves through it on ships.

Past attacks involving Iran and Israel have seen prices for oil spike initially, only to fall later “once it became clear that the situation was not escalating and there was no impact on oil supply,” according to Richard Joswick, head of near-term oil at S&P Global Commodity Insights.

That has Wall Street waiting to see what will come next. U.S. stock prices dropped to their lowest points for the day after Iran launched ballistic missiles toward Israel.

For now, the price of oil has jumped, but it’s still lower than it was earlier this year. “This is an economic shock that nobody really needs, but it is one that seems more like a shock to sentiment than to the fundamentals of the economy,” said Brian Jacobsen, chief economist at Annex Wealth Management.

That in turn sent U.S. stocks to a loss that was notable in size but outside their top 15 for the year so far.

Companies that use a lot of fuel as part of their business and need their customers feeling confident enough to travel fell to some of the sharpest losses. Cruise operator Carnival dropped 4.9%. United Airlines sank 4.4%, and Norwegian Cruise Line Holdings fell 5%.

They helped overshadow gains for U.S. oil producers and other companies that could benefit from increased fighting between Israel and Iran.

Exxon Mobil rose 2.2%, and ConocoPhillips gained 2.4% because the leaping price of crude portends bigger profits for them.

Contractors that make weapons and defense equipment also rallied. Lockheed Martin, Northrop Grumman and RTX all rose more than 3%.

The price of gold climbed as investors searched for safer places to park their cash. An ounce of gold added 1.4%.

Often, prices for Treasury bonds will likewise rise when investors are feeling nervous. That’s because U.S. government bonds have historically been seen as some of the safest options around. But Treasury prices fell Friday, which in turn pushed up their yields, in part because of worries that a spike in oil prices could drive inflation higher.

Inflation has remained relatively tame recently, and it’s near the Federal Reserve’s target of 2%, but worries are high that it could be set to accelerate because of President Donald Trump’s tariffs.

That sent the yield on the 10-year Treasury up to 4.41% from 4.36% late Thursday. Higher yields can tug down on prices for stocks and other investments, while making it more expensive for U.S. companies and households to borrow money.

A better-than-expected report Friday on sentiment among U.S. consumers also helped drive yields higher. The preliminary report from the University of Michigan said sentiment improved for the first time in six months after Trump put many of his tariffs on pause, while U.S. consumers’ expectations for coming inflation eased.

On Wall Street, Adobe fell 5.3% even though the company behind Photoshop reported a stronger profit for the latest quarter than Wall Street expected. Analysts called it a solid performance but said investors may have been looking for some bigger revenue forecasts for the upcoming year.

All told, the S&P 500 fell 68.29 points to 5,976.97. The Dow Jones Industrial Average dropped 769.83 to 42,197.79, and the Nasdaq composite sank 255.66 to 19,406.83.

In stock markets abroad, indexes slumped across Europe and Asia. France’s CAC 40 lost 1%, and Germany’s DAX dropped 1.1% for two of the larger losses.

McHugh reported from Frankfurt, Germany, and Junzhe reported from Hong Kong. AP Business Writers Matt Ott and Dee-Ann Durbin contributed.

Trader Steven Gohl works on the floor of the New York Stock Exchange, Tuesday, June 10, 2025. (AP Photo/Richard Drew)

Currency traders work near a screen showing the Korea Composite Stock Price Index (KOSPI), top left, and the foreign exchange rate between U.S. dollar and South Korean won, top center, at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Friday, June 13, 2025. (AP Photo/Ahn Young-joon)

Currency traders work near a screen showing the Korea Composite Stock Price Index (KOSPI), top left, and the foreign exchange rate between U.S. dollar and South Korean won, top center, at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Friday, June 13, 2025. (AP Photo/Ahn Young-joon)

Currency traders watch monitors near a screen showing the Korea Composite Stock Price Index (KOSPI) and the foreign exchange rate between U.S. dollar and South Korean won, right, at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Friday, June 13, 2025. (AP Photo/Ahn Young-joon)

Specialist Glenn Carell works on the floor of the New York Stock Exchange, Tuesday, June 10, 2025. (AP Photo/Richard Drew)

LONDON (AP) — Mirra Andreeva was the last person on Centre Court to realize she had won her fourth-round match against Emma Navarro on Monday, a result that made her the youngest woman since 2007 to reach the Wimbledon quarterfinals.

Andreeva was so focused on not thinking about the score that she didn't grasp that the match was over when Navarro netted a forehand in a 6-2, 6-3 win for the 18-year-old Russian.

So instead of celebrating, the seventh-seeded Andreeva calmly turned back toward her baseline and then started fiddling with her racket, seemingly getting ready for the next point.

It wasn't until she noticed the reaction from the crowd — and coach Conchita Martinez celebrating — that it dawned on her that she had won.

“Honestly, I just kept telling myself that I’m facing break points. I tried to tell myself that I’m not the one who is up on the score, I’m the one who is down," Andreeva said in an on-court interview. “In the end I completely forgot the score. I’m happy that I did it because I think that (otherwise) I would be three times more nervous on the match point.”

With the win, Andreeva became the youngest player since Nicole Vaidisova in 2007 to reach the women's quarterfinals at the grass-court Grand Slam tournament.

The score wasn't the only thing that Andreeva tried to ignore. She was also afraid to look up at the Royal Box, where eight-time men's Wimbledon champion Roger Federer was watching the match together with his wife, Mirka.

“I really tried my best not to look over there in the box, because I knew that as soon as I would look there I would just completely lose my focus,” she said, before addressing the couple directly. “Honestly, it means a lot to me that you came and watched my match. It’s been one of my dreams to see you in real life. So when I saw both of you I got really, really nervous."

The No. 10-seeded Navarro beat defending champion Barbora Krejcikova in the previous round, ensuring there will be yet another first-time champion. It will be the ninth different women’s champion in the past nine editions of Wimbledon. Serena Williams was the last repeat champ in 2016.

Andreeva will next face Belinda Bencic, who also reached her first Wimbledon quarterfinal — 11 years after making her debut at the All England Club. Bencic beating 18th-seeded Ekaterina Alexandrova 7-6 (4), 6-4 earlier on No. 1 Court.

Bencic, who lost in the fourth round on three previous occasions, failed to convert five match points while serving at 5-3 in the second set. But on the sixth one, Alexandrova sent a forehand long.

“For you guys it was entertaining,” Bencic said about that marathon game at 5-3, where Alexandrova finally converted her fourth break point to stay in the match. “For me it was a big stress.”

Bencic's best result at a Grand Slam was reaching the semifinals at the 2019 U.S. Open, where she also reached the quarters on two other occasions. The Tokyo Olympic champion, playing at Wimbledon for the ninth time, had not been into the last eight at any of the other three majors, until now.

Bencic missed last year's grass-court Grand Slam tournament while she was on maternity leave, having given birth to her first child — a daughter named Bella — in April 2024.

She said traveling with a child on tour is still relatively easy while Bella is so young, but that she's spending a lot more time taking pictures when she's at tournaments.

“I’m juggling it like every mom does,” Bencic said. “So, props to the moms.”

Also, No. 19 Liudmila Samsonova reached her first Grand Slam quarterfinal by beating Jessica Bouzas Maneiro 7-5, 7-5 on No. 2 Court.

Samsonova has yet to drop a set this tournament and will next face either No. 8 Iga Swiatek or Clara Tauson.

AP tennis: https://apnews.com/hub/tennis

Liudmilla Samsonova of Russia plays a return to Jessica Bouzas Maneiro of Spain during their women's singles fourth round match at the Wimbledon Tennis Championships in London, Monday, July 7, 2025.(AP Photo/Joanna Chan)

Belinda Bencic of Switzerland reacts after winning her women's singles fourth round match against Ekaterina Alexandrova of Russia at the Wimbledon Tennis Championships in London, Monday, July 7, 2025.(AP Photo/Kirsty Wigglesworth)

Ekaterina Alexandrova of Russia plays a return to Belinda Bencic of Switzerland during their women's singles fourth round match at the Wimbledon Tennis Championships in London, Monday, July 7, 2025.(AP Photo/Kirsty Wigglesworth)

Ekaterina Alexandrova of Russia serves to Belinda Bencic of Switzerland during their women's singles fourth round match at the Wimbledon Tennis Championships in London, Monday, July 7, 2025.(AP Photo/Kirsty Wigglesworth)

Ekaterina Alexandrova of Russia celebrates a point during her women's singles fourth round match against Belinda Bencic of Switzerland at the Wimbledon Tennis Championships in London, Monday, July 7, 2025.(AP Photo/Kirsty Wigglesworth)