Dow bounces back from 800-point drop but stagflation fears remain as Iran conflictcontinues

Stocks went on a rollercoaster ride Monday — with the Dow finishing in positive territory on upbeat comments from President Trump after plunging nearly 900 points on simmering stagflation fears.After days of mixed messages from the White House, the commander-in-chief said the conflict was “very far ahead of schedule,” sparking a late-Monday rally.The Dow closed up about 239 points, or 0.5%, while the Nasdaq and S%P 500 went up 1.4% and 0.8%, respectively.West Texas Intermediate crude oil prices closed at $94.77 after soaring past $100 a barrel earlier in the day and briefly topping $120 – stoking fears that a prolonged conflict could reheat inflation and slow economic growth, the toxic mix known as stagflation.Experts cautioned oil could spike again in the highly volatile environment.Prices could surge past $150 a barrel and trigger a stagflation crisis at home if the war in Iran rages on for another four or five weeks, experts told The Post.As for how far oil could rise over the next few weeks, “there’s really no upper bound,” said Jeff Krimmel, founder of Krimmel Strategy Group and an energy expert.“I would not be surprised if it hit $150,” he said.

“It’s just a combination of the duration of military combat operations and then the intensity.”JPMorgan analyst Andrew Tyler on Monday warned that the escalating conflict in Iran could drag the S&P 500 down to about 6,270 – a 7% slide from Friday’s close.The Trump administration has assured Americans that oil prices – and thus gasoline prices at the pump – will fall quickly, with Energy Secretary Chris Wright promising that gas prices will dip below $3 a gallon “again before too long.”National average gasoline prices hit $3.48 on Monday, according to AAA, as a major bottleneck in the Strait of Hormuz disrupted 20% of the world’s oil supply and the shipment of goods like apparel, food, fertilizer and aluminum.For every dollar increase in oil prices, there is typically a 4-cent ...