Dow futures rise as Israel-Iran conflict escalates, oil prices surge after attacks on Iran’s energy sites, and Fed’s June meeting looms.
U.S. stock futures rose Sunday night, signaling a potential recovery after a sharp sell-off on Friday triggered by Israel’s airstrikes on Iran’s military leadership, nuclear sites, and bases.
Over the weekend, both nations intensified attacks, with Iran’s energy infrastructure, including oil refineries and a major gas field, increasingly targeted. Dow futures gained 44 points (0.1%), S&P 500 futures rose 0.14%, and Nasdaq futures climbed 0.2%.
Oil prices eased slightly but remained elevated, with U.S. crude up 1.1% to $73.79 per barrel and Brent crude up 1% to $74.94, following a 7% surge on Friday. An Iranian official hinted at possibly closing the Strait of Hormuz, a vital global oil route handling 21% of petroleum liquids.
Deutsche Bank’s George Saravelos warned that a full disruption of Iranian oil and the strait’s closure could push oil prices above $120 per barrel.
The 10-year Treasury yield dipped 0.9 basis points to 4.415%, the dollar weakened 0.17% against the euro and yen, and gold rose 0.2% to $3,459.90 per ounce. Rising oil prices stoked inflation concerns despite minimal tariff impacts, reducing expectations for Federal Reserve rate cuts.
The Fed’s upcoming Tuesday-Wednesday meeting, with new rate forecasts and a press briefing from Chairman Jerome Powell, will be closely watched amid inflation, tariffs, and geopolitical tensions.
