U.S. Stock Futures Decline as Oil Prices Rise Amid U.S.-Iran Tensions

U.S. stock futures declined on Sunday evening, following a positive week for major indices. Dow Jones Industrial Average futures dropped 253 points, or 0.5%. S&P 500 futures fell 0.6%, while Nasdaq-100 futures decreased 0.7%.

The declines came after Wall Street recorded gains last week. The S&P 500 rose nearly 6%, ending a five-week losing streak and achieving its best weekly performance since late November. The Dow Jones Industrial Average advanced 3% for the week, and the Nasdaq Composite increased 4.4%, also halting their respective five-week declines.

During the week, major indices experienced significant volatility as traders monitored developments in the U.S.-Iran conflict and assessed its potential duration. The conflict involves ongoing tensions, including restrictions on the Strait of Hormuz, a key oil shipping route.

On Sunday, President Donald Trump stated that the U.S. would strike Iran's power plants and bridges if the Strait of Hormuz is not opened by Tuesday. In a post on Truth Social, Trump wrote:

“Tuesday will be Power Plant Day, and Bridge Day, all wrapped up in one, in Iran. There will be nothing like it!!!”

The Strait of Hormuz remains a critical chokepoint for global oil trade, with about 20% of the world's oil passing through it daily. Closure or restrictions could disrupt supplies and affect energy markets worldwide.

Crude oil prices rose on Sunday. West Texas Intermediate crude futures increased 1.9% to $113.53 per barrel. Brent crude futures climbed 1.3% to $110.44 per barrel. Higher oil prices stem from concerns over the U.S.-Iran tensions potentially impacting supply.