New Delhi: Stock futures rose early Monday as the Israel-Iran war stock market impact grew more evident.
On the otherhand, with oil prices climbing above $75 per barrel and investors bracing for further geopolitical volatility.
The escalating conflict has triggered sharp moves in commodities and global indexes.
With markets closely watching energy disruptions and Fed policy signals.
Stock‑index futures ticked up early Monday even as heightened geopolitical tensions in the Middle East jolted energy markets and stoked investor caution.
- Dow Jones Industrial Average futures added roughly 0.02% (about 9 points).
- S&P 500 futures advanced around 0.14%.
- Nasdaq 100 futures firmed 0.19%.
Israel-Iran War : Oil Rally Accelerates
West Texas Intermediate (WTI) crude spiked more than 3% in electronic trading, breaking above $75 per barrel, while global benchmark Brent climbed a similar margin to hover near $76.65.
The surge followed Israeli strikes on two Iranian natural‑gas sites and an oil depot, moves that sparked fears of broader disruptions to regional energy infrastructure and global supply chains.
Tehran has signaled it may consider shutting the vital Strait of Hormuz, a chokepoint for nearly a fifth of the world’s oil shipments.
Recap of Friday’s Risk‑Off Slide
Last week’s flare‑up triggered a sharp risk‑off swing:
- The Dow plunged more than 700 points Friday, capping a 1.3% weekly loss.
- The S&P 500 fell 0.4% for the week.
- The Nasdaq Composite slipped 0.6%.
Investors rotated into traditional safe‑havens—gold rallied—while energy stocks outperformed on the back of the oil spike.
Israel-Iran War: What’s on Deck
- Key U.S. manufacturing PMIs land Monday morning, offering the first read on factory momentum in June.
- The Federal Reserve announces its rate decision on Wednesday.
- CME’s FedWatch tool shows traders assigning a ~97% probability that policymakers hold rates steady, even as higher oil prices complicate the inflation outlook and President Donald Trump continues to press Fed Chair Jerome Powell for a cut.
Strategic Context
Raymond James analyst Ed Mills notes the weekend attacks are “the largest strike on Iranian territory since the 1980s,” warning that the trajectory of regional escalation will hinge on any U.S. or Russian responses.
Markets remain laser‑focused on whether the conflict spills into neighboring producers or shipping lanes, which could amplify geopolitical risk, market volatility, and inflation expectations.