Futures linked to the main U.S. stock indices point to significant losses following the launch of massive air attacks on Iran by the U.S. and Israel. The strikes push up oil prices and spur a broader rush out of risk and into safe-haven assets, notably gold. Shares in Asia also slide, weighed down by uncertainty around the effect of artificial intelligence advancements on the technology sector.
Track the fallout from the Iran conflict with InvestingPro 1. Futures slump U.S. stock futures sank sharply on Monday, as traders braced for the fallout from U.S. and Israeli attacks against Iran that have threatened to spill into a conflict engulfing the wider Middle East region. By 02:54 ET (07:54 GMT), the Dow futures contract had shed 733 points, or 1.5%, S&P 500 futures had dropped by 104 points, or 1.5%, and Nasdaq 100 futures had slumped by 463 points, or 1.9%. On Saturday, the U.S. and Israel carried out joint strikes on sites across Iran, which resulted in the killing of several high-ranking Iranian personnel, including Supreme Leader Ayatollah Ali Khamenei. U.S. President Donald Trump has urged Iranian opposition to topple nation’s longstanding repressive government system, although many senior U.S. officials remain skeptical that a regime change is impending, Reuters has reported. Uncertainty has particularly surrounded how long Washington plans to remain involved in the conflict. Trump told the New York Times that the assault could be sustained for "four to five weeks." He also declined to provide specific details on how he foresees a transition in Iran transpiring, saying he has "three very good choices" to lead the country but "won’t be revealing them now," the New York Times reported. The attacks provoked retaliatory actions from Tehran on locations around the Middle East, with energy-producing Gulf nations among the targets. Three U.S. servicemembers were killed and five seriously wounded, according to media reports citing U.S. Central Command, while Trump has warned of potentially more American casualties. In a sign that the conflict is widening outside of Iran, Israel stuck Tehran-backed Hezbollah targets in Lebanon. The Wall Street Journal also reported that at least one American aircraft has been downed in Kuwait. 2. Oil prices spike amid Iran conflict Oil prices have skyrocketed in the wake of the attacks, reflecting worries that Iran may move to close down the Strait of Hormuz, a crucial waterway through which roughly a fifth of global oil supplies and 20% of worldwide liquefied natural gas flow. At 03:24 ET, Brent crude futures had surged by 10% to $80.14 a barrel and U.S. West Texas Intermediate crude futures had spiked by 9.3% to $73.26 per barrel.
