US futures drop due to rising tensions between Israel and Iran, leading to geopolitical concerns.

From Yahoo Finance: 2025-06-19 12:04:00

Equity futures dropped due to US support speculation in Israel-Iran conflict, raising geopolitical concerns and inflation fears from higher oil prices. S&P 500 contracts fell 0.9%, Stoxx 600 index dropped 0.8%, and Asian shares declined over 1%. Brent crude rose above $78/barrel, with the dollar gaining 0.2% against currencies.

Traders turned cautious after reports of possible US strike on Iran, following Fed’s growth downgrade and inflation projection. Israel attacked more of Iran’s nuclear sites, awaiting Trump’s decision on joining. Odds of US involvement are high, with potential geopolitical ramifications, as Iran seeks nuclear weapons.

In Europe, Bank of England kept rates at 4.25%, surprising with more members voting for a cut. Swiss National Bank cut rates to zero to curb franc’s rise, while Norway reduced borrowing costs post-pandemic. Extreme US involvement in Israel-Iran war could push oil to $130-$150 a barrel, halting central bank policy easing.

Brent futures carry an $8 geopolitical premium since Israel-Iran attacks, potentially escalating with US intervention. Market moves include S&P 500 futures down 0.9%, Stoxx Europe 600 falling 0.8%, Dollar Spot Index up 0.2%, and cryptocurrencies like Bitcoin and Ether dropping. Yields on 10-year Treasuries and European bonds remained mostly stable.



Read more at Yahoo Finance: US Futures Drop as Mideast Escalation Risk Mounts: Markets Wrap