US stock futures fell ahead of Monday’s trading as investors reacted to escalating tensions in the Middle East. Futures tied to the Dow Jones Industrial Average slipped 0.3%, while S&P 500 and Nasdaq 100 futures dropped 0.26% and 0.35%, respectively.
Oil prices surged to their highest levels in recent months, with Brent crude futures surpassing $80 a barrel and West Texas Intermediate (WTI) rising to $77. The spike reflects heightened concerns about potential disruptions to oil supply routes in the region.
"The rising oil prices, combined with ongoing geopolitical tensions, strongly suggest that inflation in the US could accelerate over the next 90 days," said Joe Brusuelas, chief economist at RSM.
In contrast, some Middle Eastern markets showed optimism. Israel’s TA-35 index climbed 1.5%, and Egypt’s EGX30 surged 2.7% on Sunday. Traders appeared hopeful that diplomatic efforts might ease regional tensions.
United Nations Secretary-General António Guterres expressed concern over the situation, warning that escalating conflicts could lead to a "perilous turn" and stressing the need for an immediate ceasefire and a return to serious negotiations.
As tensions continue to rise, global markets are bracing for increased volatility. Investors are keeping a close eye on developments in the Middle East, aware that further escalation could impact global economic stability.
