U.S. stock index futures edged higher on Monday as investors assessed the market impact of U.S. strikes on Iranian nuclear facilities over the weekend. Tehran has not yet clarified its response, stating only that it “reserves all options” to defend itself.
Iran condemned President Trump’s actions, calling him a “gambler” and warning of “everlasting consequences.” The Islamic Republic has intensified aerial attacks on Israel, which had initiated the conflict 11 days ago with its own surprise strikes on Iran’s nuclear infrastructure. Iranian media reports suggest the country is considering blocking the Strait of Hormuz—a vital route for global oil and gas shipments—or targeting U.S. military bases in the region.
While tensions have escalated, some analysts argue that the strikes removed uncertainty about U.S. intentions. “With the overhang of uncertainty lifted somewhat, the weekend events could wind up being a net positive,” said analysts at Vital Knowledge.
As of 05:20 ET (09:20 GMT), Dow Jones futures were flat, S&P 500 futures rose 10 points (0.2%), and Nasdaq 100 futures gained 46 points (0.2%).
Oil Retreats After Brief Gains
Oil prices rose modestly as markets processed the potential consequences of the U.S. action, which came unexpectedly after Trump had hinted at a two-week decision window. Traders remain alert to the risk of supply disruptions, particularly through the Strait of Hormuz.
While Brent crude futures for August were up 0.2% at $77.17 per barrel and WTI rose 0.2% to $72.15 as of 05:21 ET, both benchmarks had pared back earlier gains.
Rising oil prices have sparked concerns that renewed inflationary pressure could prompt the Federal Reserve to hold off on expected interest rate cuts.
Key Economic Data and Powell Testimony in Focus
Markets will also focus on upcoming economic releases this week, including the preliminary June PMI figures due Monday, which are expected to show a slower pace of growth amid ongoing concerns around Trump’s trade policies.
Meanwhile, several Fed officials are set to speak, with Chair Jerome Powell delivering a two-day testimony before Congress starting Tuesday. Powell recently noted that the Fed remains unconvinced about the need for imminent rate cuts, citing uncertainty from broad U.S. tariffs as a major risk to the economic outlook.
