Crude oil breaks $100, US stock futures plummet, and VIX panic index surges! Analysts warn: the worst time for the market has not yet arrived.

Due to escalating hostile actions in the Middle East, oil transportation and infrastructure are facing increasing pressure. Global investors are concerned about future market turmoil. On Monday, crude oil futures prices rose above $100 per barrel, and spot crude oil prices broke through $110. US stock index futures fell. Under pressure from a stronger dollar and inflation risks, gold prices fell to around $5120 per ounce in early trading after experiencing their first weekly decline in over a month. The US dollar index rose by 0.4%. WTI crude oil prices rose by about 19% last week to around $108 per barrel. The price had already recorded a 36% increase in the previous week. As the conflict in Iran enters its second week, the oil market faces further risks of turmoil this week. Major oil-producing countries are cutting production, oil storage centers are nearing saturation, and traffic in the Strait of Hormuz has been effectively disrupted. On Monday, US stock index futures fell by 1.5%, and Asian stock markets also seemed poised to decline. The US dollar strengthened against all Group of Ten (G10) currencies. Due to rising oil prices fueling inflation expectations, Australia's 3-year bond yields surged to their highest level since July 2011. Dave Mazza, CEO of Roundhill Financial, said, "This is no longer just an issue of the Strait of Hormuz being effectively closed, but a supply chain disruption spreading deeper into the region. This shift may prompt investors already feeling uneasy to further reduce their risk exposure." Last week, the deteriorating geopolitical situation added new pressure to the market, already under pressure from concerns about the disruption of artificial intelligence and potential cracks in the credit market, triggering a wave of selling across regions and asset classes. The escalating crisis has left investors in a dilemma: the risk of soaring oil prices triggering a new round of inflation on one hand, and signs of cooling in the US labor market, which may strengthen the need for monetary easing policies, on the other. On Sunday, Iran intensified its attacks on its Middle Eastern neighbors, while Israel attacked fuel depots in Tehran and threatened Iran's power grid. US President Trump warned that the US would consider attacking regions that were previously not targeted. He tweeted that attacks will continue until "they surrender, or more likely, collapse completely!" The Chicago Board Options Exchange Volatility Index (VIX), which measures implied price volatility of the S&P 500 Index, surged to close to 30 last Friday, pushing spot prices above their three-month futures prices, the largest price inversion in nearly a year. Michael O'Rourke, Chief Market Strategist at JonesTrading, said, "The worst is yet to come for the stock market. I expect market risk aversion to intensify until some tangible positive news is received." Meanwhile, data released by the US last Friday showed a decrease of 92,000 jobs in non-farm payroll employment last month, one of the largest declines since the outbreak of the pandemic. Although some of the decline was expected, such as temporary impacts from healthcare worker strikes and possible weather-related disruptions, job cuts were seen across industries. The unemployment rate rose to 4.4%.