Futures Muted#
U.S. stock futures showed little movement on Tuesday as investors tried to gauge the ongoing war in Iran. President Trump announced a temporary delay to military strikes on Iranian power plants, but uncertainty remains. By 04:20 ET (08:20 GMT), the Dow futures were down by 25 points, or 0.1%, while S&P 500 and Nasdaq 100 futures were mostly unchanged.
Previously, Wall Street saw gains after Trump claimed productive talks with Tehran, but Iranian officials denied these discussions, suggesting that Trump may be trying to calm market fears. Analysts express skepticism about a quick resolution to the conflict, noting that the S&P 500 may face resistance around 6,900 to 7,000 points.
Fresh Strikes Hit Areas Across the Middle East#
Despite hopes for a resolution, new missile attacks have occurred in the Middle East. Reports indicate that several locations in Israel, including Tel Aviv, were targeted, and Kuwait and Saudi Arabia faced drone and missile strikes. Additionally, Israel has struck targets associated with Iran-backed Hezbollah in Lebanon.
A critical concern is the Strait of Hormuz, a key waterway where a significant portion of the world’s oil passes. The strait remains largely closed to tanker traffic, heightening tensions and affecting global oil supplies, particularly for major energy importers in Asia.
Oil Prices Surge#
As a result of these developments, oil prices have surged, raising fears of global inflation that could prompt central banks to consider raising interest rates again. Brent crude futures, the global oil benchmark, briefly dipped below $100 a barrel after Trump’s announcement but remain significantly higher than pre-war levels of around $70 a barrel. As of 04:34 ET, Brent futures for May delivery had risen by 1.6% to $101.58 a barrel.
Gold Steady#
In the backdrop of these market movements, gold prices have remained stable, reflecting ongoing investor caution amid geopolitical tensions.