Dow futures slide 200 points as oil rises following U.S. bombing of Iran: Live updates
Timothy A. Clary | Afp | Getty Images
Stock futures fell ahead of Monday's session after the United States entered Israel's war against Iran over the weekend by striking three nuclear sites, a move by President Donald Trump that raised oil prices and risked a bigger conflict in the Middle East.
Futures tied to the Dow Jones Industrial Average fell by 159 points, or 0.4%. S&P 500 futures shed 0.4% and Nasdaq 100 futures lost 0.5%.
The U.S. launched attacks Saturday at Iranian sites in Fordo, Isfahan and Natanz, surprising investors who were expecting more diplomacy to possibly take place after Trump said on Friday that he would make a decision to attack Iran "within the next two weeks," according to the White House.
Oil prices have already spiked in recent weeks following the increased tensions in the Middle East. On Sunday night, U.S. crude oil futures rose another 3.8% to nearly $77 a barrel.
"When you have conflict, you have an overreaction — a knee jerk reaction — which tends to be an exaggeration, that can last up to two to three weeks," said Jay Woods, chief global strategist at Freedom Capital Markets. "With Ukraine, the S&P 500 sold off 6% and oil spiked dramatically."
Trump said in a Saturday evening speech from the White House after the attacks, that "there will be either peace, or there will be tragedy for Iran far greater than we have witnessed over the last eight days."
Now traders braced for Iran's retaliation. The country could target U.S. personnel in nearby bases or close the Strait of Hormuz, which would majorly disrupt global oil flows. A prolonged blocking of the strait could boost oil prices above $100 per barrel. In a Sunday interview, with Fox News, U.S. Secretary of State Marco Rubio called for the Chinese government to step in and prevent Iran from closing the key trade route. China remains Iran's most important oil customer.
"Now with the US fully engaged in the conflict, the baseline for oil prices has shifted to the mid $80s range per barrel entering stage two from one-side regional conflict to US managed conflict," said Ahmad Assiri of Pepperstone. "Even if Iran doesn't physically close the strait or attack oil tanks, the mere increase in probability from about 5% to around 15% will itself create a premium in crude prices."
The S&P 500 lost 0.15% last week for its second negative week in a row. Despite this soft patch, the benchmark closed Friday about 3% from a record. The spike in oil prices and a greater war in the Middle East adds another threat to the stock market and the economy, already dealing with a rushed remaking of global trade by Trump this year.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Boston Globe
27 minutes ago
- Boston Globe
Why Trump continues to lie about the 2020 presidential election
The right results were given in 2020. Trump lost. But nearly five years later, whenever Trump speaks, the question isn't whether he'll find a way to switch the conversation to the 2020 election but when. Given his tendency to babble about inconsequential subjects, it's tempting to dismiss Trump's off-script ramblings. But don't overlook the method behind the madness here. Get The Gavel A weekly SCOTUS explainer newsletter by columnist Kimberly Atkins Stohr. Enter Email Sign Up From Trump's Advertisement That's what he's doing every time he repeats the Big Lie about 2020. He upholds it as an example of a dishonest election stolen from the people despite no evidence of widespread fraud in that presidential contest. Trump lost because American voters had enough of him. Advertisement The president's motives are clear. He needs Republicans to hold on to the House in 2026 because he knows that if Democrats regain control they'll start impeachment hearings against him as soon as possible. For all his big talk about big wins in his second term, Trump knows that voters, For years, Trump undermined election integrity. As the 2016 presidential contest entered its final weeks, he falsely claimed that the election was This was Trump's hedge against a possible defeat: He could only lose an election if it was rigged against him. Of course, all of his machinations after he lost in 2020 supercharged his baseless allegations, culminating in the deadly insurrection at the US Capitol on Jan. 6, 2021, when he attempted to overthrow the outcome of the presidential election. But despite Trump's impeachment for incitement, he hasn't stopped promoting the antidemocratic lie that he was robbed and that election integrity must be restored, while he's doing everything to destroy it. That includes Trump's latest attempt to end mail-in voting by Advertisement Mail-in balloting garnered widespread use during the COVID-19 pandemic in 2020. According to a Trump remains unswayed. He Seven months into his Trump uses 2020 as a phony example of a crooked election. That's why he brings it up as often as possible and usually in places where he receives no pushback. But the voters he's targeting should also remember 2020 as the year when a historic number of people, despite a pandemic, cast their ballots and tossed this tyrant out of power. Renée Graham is a Globe columnist. She can be reached at
The Hill
27 minutes ago
- The Hill
Zelensky gives Trump a golf putter
President Trump is putting a new flat stick in his golf bag, courtesy of a Ukrainian soldier who shares his love for the game and delivered by Ukrainian President Volodymyr Zelensky. Zelensky presented Trump with a new blade-style putter during his visit to The White House on Monday. The Ukrainian leader told the president that the club was given to him by Kostiantyn Kartavtsev, a junior sergeant in Ukraine's Armed Forces. The solider lost a leg in the first months of Russia's full-scale invasion, according to the Ukrainian government, noting golf became part of Kartavtsev's rehabilitation and helped him regain balance 'both physically and mentally.' Trump recorded a video for the Ukrainian fighter thanking him for the gift. 'I just watched you swing, I know a lot about golf, and your swing is great. You're going to be a very good golfer soon,' he told the soldier in the clip making the rounds online with Ukrainian subtitles. 'I want to thank you for this putter … is made with real love from you.' The president encouraged the Ukrainian soldier to keep playing golf and said he and Zelensky are working 'very, very hard to bring your country back to health.' 'The putter is beautiful, thank you. Every time I sink a putt I'll be thinking about you,' he quipped. Zelensky traveled to Washington to meet with Trump and European leaders as the U.S. helps to facilitate a peace deal between Ukraine and Russia amid the ongoing war in Eastern Europe. An avid golfer who owns courses and resorts around the world, Trump was in Scotland earlier this month for the grand opening of his newest property at Turnberry. The PGA Tour also announced Tuesday that it would return to the president's Doral resort in Florida next May, marking the first time the sport's premier league has held an event at a Trump property since 2016.
The Hill
27 minutes ago
- The Hill
Trump floats air support for Ukraine as part of security guarantees
President Trump is floating providing U.S. pilots and war planes as part of security guarantees for post-war Ukraine as he pushes for an end to Russia's war against the country. Trump has said the U.S. will help Europe craft security guarantees for Ukraine to backstop any peace deal reached with Russia, in lieu of Ukraine joining NATO, a red line for Russia. 'When it comes to security, they are willing to put people on the ground,' Trump said in an interview with Fox News aired Monday evening, referring to Europe. 'We're willing to help them with things, especially, probably, if you talk about by air because nobody has stuff we have.' White House Spokesperson Karoline Leavitt said Tuesday that Trump has tasked his national security team to 'come up with a framework for these security guarantees that can be acceptable to help ensure a lasting peace and end this war.' 'I won't, certainly, rule out anything as far as military options that the president has at his disposal, I'll let him do that,' she said, but added that the president has 'definitively' ruled out boots on the ground. NATO chief Mark Rutte on Monday said Trump's willingness to involve the U.S. in security gaurantees for Ukraine was a 'breakthrough' in the peace process, though details on America's potential role remain scarce. Trump's floating the possibility for air support could mean American pilots engaged in defensive operations, guarding against Russian missiles, or simply providing support for other aircraft – such as air-to-air refueling or for transportation of military equipment. Defensive operations could risk a confrontation between the U.S. and Russia, a scenario that both Trump and former President Biden before him have been anxious to avoid. Biden turned down Ukraine's requests for no-fly zone following Russia's invasion, over concerns it could escalate the conflict and lead to a direct confrontation between nuclear powers.
