S&P 500, Nasdaq, Dow futures slip on Hormuz tensions

US stock futures declined on Monday following a volatile weekend that reignited tensions between the US and Iran, dampening hopes for stability in the Middle East and raising fresh uncertainty for investors, News.Az reports, citing foreign media.

Futures for the Dow Jones Industrial Average fell by 0.7%, while contracts tied to the S&P 500 and the Nasdaq 100 each dropped by around 0.6%.

The sharp escalation in tensions followed reports that the US Navy seized an Iranian vessel, reportedly damaging its engine room, according to President Donald Trump.

In response, Iran targeted vessels and abruptly halted traffic through the Strait of Hormuz on Saturday, reversing its earlier commitment to allow limited passage and accusing the US of violating a ceasefire agreement.

These developments renewed concerns about potential disruptions to global oil supplies through the strategically vital waterway, fueling fears of rising inflation and complicating efforts to reach a broader resolution to the conflict. The situation in Hormuz remains one of several key obstacles in ongoing US-Iran negotiations.

Oil prices surged by more than 6% on Monday, although they remained below the critical $100 threshold. US benchmark West Texas Intermediate crude traded at approximately $88 per barrel, while Brent crude hovered just above $96 per barrel.

Looking ahead, investors are preparing for another busy week of corporate earnings. Major companies such as Tesla, Intel, and United Airlines are scheduled to report results, providing further insight into how markets are coping with record-high stock levels alongside mounting geopolitical risks.

News.Az 

By Nijat Babayev