Wall Street is reacting to the ongoing conflict between Israel and Iran. CBS News MoneyWatch correspondent Kelly O'Grady reports.

The initial round of Israeli attacks sent oil prices 7 percent higher on Friday. Still, at about $74 a barrel, Brent crude remains below the $80 average for 2024, the Deutsche Bank analysts wrote. The market continued to waver, though, and by Monday, oil prices had fallen about 3 percent.

"Israel is being assisted this way or that way by some Iranians," ex-Israeli National Security chief Giora Eiland told Newsweek.

Israel's shekel jumped sharply and stocks and bonds gained on Monday as investors began to look beyond the escalating conflict with Iran and shape a more favourable long-term risk assessment for the country's assets.

British Prime Minister Keir Starmer said all G-7 leaders agree the Israel-Iran conflict risks inflaming the 'tinderbox' of Gaza and hurting the global economy.

Israel's conflict with Iran represents far more than another Middle Eastern crisis—it marks the emergence of a dangerous new chapter in nuclear rivalries that has the potential to reshape global proliferation risks for decades to come.

A dramatic spike in the potential for all-out war between Israel and Iran would typically be expected to spark an immediate and strong rally in the U.S. dollar, with investors seeking the safety and liquidity of the world's reserve currency.