US Futures Drop as Israel Strikes Iran, Oil Surges Past $100
Middle East conflict escalates with over 200 targets hit, Strait of Hormuz closure threatens global energy supply
US stock futures fell on Friday as Israel launched an extensive wave of military strikes on Iran, driving oil prices above $100 per barrel and reigniting concerns about global energy security.
S&P 500 futures declined 0.23% in pre-market trading, adding to what is shaping up as a second straight week of losses for global equities. European stocks are set for their second weekly decline as the Iran conflict weighs on investor sentiment.
The Israeli Air Force conducted attacks on more than 200 sites across western and central Iran, including targets in Tehran. The strikes, carried out by dozens of fighter jets, hit ballistic missile launchers, air defense systems, and weapons production facilities, marking a significant escalation in a conflict that began on February 28 with joint US-Israel operations.
Brent crude oil prices surged past $100 per barrel, trading at approximately $100.32, as Iran closed the Strait of Hormuz, a critical maritime choke point through which roughly one-fifth of global oil consumption normally transits. Iran has asserted control over the waterway, prohibiting US and Israel-linked ships from passage and requiring other vessels to obtain permission.
The International Energy Agency has characterized the situation as the "largest supply disruption in the history of the global oil market", with reports indicating a reduction of approximately 10 million barrels per day in production. The closure has effectively halted shipping traffic through the strait, triggering severe disruption in global energy trade.
Safe-haven assets attracted investor interest, with spot gold showing gains around $5,088 per troy ounce. However, a strengthening US dollar and rising bond yields have tempered gold's appeal, limiting its upside despite heightened risk aversion.
The Trump administration is considering a temporary waiver of the Jones Act to enable smoother transit of energy and agricultural shipments between US ports, according to reports. The move would help mitigate domestic supply disruptions caused by the Middle East crisis.
Iran's Supreme Leader Mojtaba Khamenei warned that attacks on Israel and US military assets would continue unless US bases in the region are closed. Israel's Prime Minister Benjamin Netanyahu stated that Israel aims to create conditions for regime change while preventing Iran from advancing its nuclear and ballistic projects underground.
The Dow Jones Industrial Average tumbled more than 700 points on Thursday, with the CNN Fear & Greed Index entering the "Extreme Fear" zone as investors reacted to rising oil prices and escalating geopolitical tensions.
Market analysts are closely watching for any diplomatic breakthrough that could ease the crisis, though neither side has shown signs of backing down. The conflict's persistence threatens to keep energy prices elevated and sustain volatility across global financial markets.