US stocks drop and oil pops as war rages between Israel and Hamas

• US stocks fell on Monday after Hamas launched an attack against Israel over the weekend.
• Oil prices surged after the attack, with WTI crude oil jumping as much as 5% to $87 a barrel.
• Market volatility could surge if the conflict between Israel and Hamas leads to destabilization in the middle east.

The breakout of war between Israel and Hamas over the weekend led to a surge in market volatility on Monday, with stocks falling and oil prices spiking.

Hamas launched the surprise attack against Israel on Saturday, which killed more than 700 Israelis, including at least 260 civilians that were attending a music festival. Israel has since declared war against Hamas and announced a "complete siege" of the Gaza strip, cutting off its access to electricity, food, water, and fuel.

The outbreak of war led to surging oil prices, and the volatility could increase if the fight between Israel and Hamas further destabilizes the Middle East and entangles other countries into the conflict like Iran.

"Reports regarding Iran's support for the Hamas attack have been denied by Iran but concern is focused on a broader Iran-Israeli conflict, which would, in turn lead to a dramatic escalation of conflict in the region, and a dramatic climb in oil prices," LPL's chief global strategist Quincy Krosby said.

Here's where US indexes stood shortly after the 9:30 a.m. opening bell on Monday:

• S&P 500: 4,293.90, down 0.35%

• Dow Jones Industrial Average: 33,395.15, down 0.04% (-11.97 points)

• Nasdaq Composite: 13,303.58, down 0.95%

Here's what else is going on today:

• Israel's currency weakened to a seven-year low against the dollar on Monday, and the Bank of Israel announced it would sell up to $30 billion in foreign reserves.
• Here's what six Wall Street experts had to say about the breakout of war between Israel and Hamas and its potential impact markets going forward.
• The ongoing Treasury rout ranks as the deepest bond bear market in the 247-year history of the US, according to Bank of America.

In commodities, bonds, and crypto:

• West Texas Intermediate crude oil rose 3.62% to $85.79 a barrel. Brent crude, the international benchmark, gained 3.38% to $87.44 a barrel.
• Gold jumped 0.71% to $1,858.30 per ounce.
• The bond market was closed on Monday. The 10-year Treasury yield closed at 4.80% on Friday.
• Bitcoin fell 1.67% to $27,468.