US stock futures retreated early Monday as a weekend surge in US-Iran tensions dashed hopes for a lasting Middle East peace deal, sending oil prices sharply higher and rattling investor confidence heading into a pivotal week of earnings.
Dow Jones futures dropped 0.70%, while contracts on the S&P 500 and the Nasdaq 100 each fell roughly 0.6% in early trading Monday.
The pullback comes after a winning week for Wall Street, with the S&P 500 and Nasdaq Composite climbing to all-time highs last week on the back of ceasefire optimism and the reopening of the Strait of Hormuz.
The weekend brought a sharp reversal. Iran had declared the Strait of Hormuz reopened, but by Saturday, vessel traffic through the key shipping lane was restricted again, with state media saying the US “did not fulfill their obligations.” Trump warned Sunday he would “knock out every single Power Plant, and every single Bridge, in Iran” if Tehran did not agree to Washington’s terms to end the conflict, with the fragile ceasefire set to expire this week.
Oil prices soared over 6% on Monday in response, though they remained below the key $100 level. U.S. benchmark West Texas Intermediate crude futures traded at around $88 per barrel, while global benchmark Brent crude changed hands just above $96.
This week brings a heavy slate of corporate earnings that could set the tone for broader markets. Earnings season accelerates from April 20 to 24, with key names including Tesla (NASDAQ:TSLA), Intel
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