U.S. Stock futures rebounded overnight Sunday, reversing earlier declines as investors assessed the escalating conflict between the U.S. And Iran and its potential impact on global oil supplies. West Texas Intermediate crude futures briefly surged above $102 a barrel before settling around $99, while Brent crude traded around $103 a barrel, according to market data.
The initial dip in futures earlier Sunday reflected concerns over further disruptions to oil infrastructure following U.S. Strikes on Iranian military targets Friday, specifically on Kharg Island, a key oil export hub. Iran has vowed retaliation for the attacks, raising fears of further escalation in the Persian Gulf. The conflict has already halted traffic through the Strait of Hormuz, a critical waterway for global energy shipments, impacting approximately 20% of the world’s daily oil throughput.
Despite the geopolitical tensions, Dow Jones Industrial Average futures rose approximately 0.2% in overnight trading, while S&P 500 and Nasdaq-100 futures likewise recovered from earlier losses. A report from the Wall Street Journal suggesting potential international assistance in escorting tanker traffic through the Strait of Hormuz may have contributed to the market’s turnaround, though the timing of such an operation remains unclear.
Oil prices have climbed roughly 40% since the start of the U.S. And Israeli bombing campaign against Iran at the complete of February, crossing the $100-a-barrel threshold last week for the first time since 2022. The surge in crude prices contributed to a third consecutive weekly decline for major U.S. Stock indexes last week, with the Dow dropping 2%, the S&P 500 sliding 1.6% and the Nasdaq falling 1.3%.
Bitcoin, which rallied on Friday to nearly $74,000, remained above $72,000 in overnight trading. Gold and silver futures, however, experienced declines. The U.S. Dollar Index remained relatively stable.
Investors are now focused on the Federal Reserve’s policy meeting this week, though expectations are widespread that interest rates will remain unchanged. Nvidia’s annual GTC conference begins Monday, with a keynote address from CEO Jensen Huang.
As of early Monday trading, West Texas Intermediate crude advanced about 2% to around $100.90 per barrel, while Brent crude rose roughly 2.6% to hover above $105.
