U.S. stocks recovered some of their early losses on Monday after oil prices receded slightly despite investor concerns that the war in Iran could lead to an oil crunch. 

The S&P 500 slid 9 points, or 0.1%, to 6,731 in midday trading, while the Dow Jones Industrial Average fell 250 points, or 1.5%, to 47,252. The Nasdaq Composite rose 0.3%.

Financial markets have been highly volatile since the war in the Middle East erupted last week. The turbulence continued into Monday, after oil surpassed $100 for the first time since 2022, when Russia’s invasion of Ukraine pushed up global energy prices. 

Brent crude, the international standard, on Monday fell to $98.72, while West Texas Intermediate, the U.S. benchmark, dropped to $93.39 per barrel, according to FactSet. Both benchmarks briefly approached $120 a barrel on Monday as investors worried about a prolonged conflict. 

Oil prices are higher because shipping through the Strait of Hormuz, a vital waterway for oil tankers, is at a near standstill. About 20% of the world’s oil supply flows through the Strait. That supply hit is affecting motorists around the world and risks affecting a range of other industries, from agriculture to petrochemicals, according to economists.

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Higher energy prices are leading Americans to pay more at the pump and renewing fears of inflation. The national gas price average in the U.S. rose to $3.48 on Monday, up from about $3 a week ago and $2.90 a month ago, according to AAA. 

Wall Street analysts say financial markets tend to look past geopolitical conflicts and predict that stocks will rebound, while noting that volatility is likely to continue until hostilities in Iran ease.

“This oil shock won’t end until ships can sail freely through the strait,” Ed Yardeni of Yardeni Research told investors in a report on Monday. “Until then, the financial markets are likely to become increasingly concerned about a 1970s-style stagflation scenario.”