Wall St futures fall as Iran tensions push oil up 6%

U.S. stock futures fell sharply on Thursday as geopolitical tensions in the Middle East escalated, while oil prices surged 6% amid renewed concerns over global energy supply disruptions.

Futures linked to major indexes showed broad declines, with the Dow down 1.18%, the S&P 500 falling 1.31%, and the Nasdaq 100 sliding 1.57%, News.Az reports, citing Reuters.

The sell-off came after comments from U.S. President Donald Trump signaling a tougher military stance toward Iran, raising uncertainty over the duration and scale of the conflict.

Investors reacted to the possibility of prolonged instability, which has already shaken global markets in recent weeks.

Crude oil prices jumped sharply, with Brent crude climbing to around $107 per barrel as traders priced in potential supply risks tied to the conflict.

The energy surge added pressure to inflation expectations, raising concerns about how central banks may respond in the coming months.

Volatility also rose, with the CBOE Volatility Index (VIX) increasing as investors shifted toward safer assets like the U.S. dollar.

At the same time, expectations for Federal Reserve interest rate cuts have weakened, with markets now anticipating fewer policy changes amid inflation risks.

Investors are closely watching upcoming economic data, including U.S. jobless claims and the non-farm payrolls report, for further signals on the health of the economy.

Meanwhile, U.S. markets are scheduled to be closed on Friday for the Good Friday holiday, which may reduce liquidity heading into the next trading session.

News.Az 

By Aysel Mammadzada