US stock futures drop as President Trump orders strikes on Iran, causing market uncertainty

From Yahoo Finance: 2025-06-22 18:10:00

US stock futures opened lower Sunday evening, reacting to President Trump’s decision to involve the US in the Israel-Iran conflict, causing market uncertainty. Futures for S&P 500, Nasdaq, and Dow Jones fell around 0.6%. Oil prices surged over 4% with WTI crude near $77 and Brent crude above $80 per barrel.

President Trump announced US strikes on Iran’s nuclear sites, claiming success and threatening more attacks if peace talks aren’t pursued. Focus shifts to Iran’s response, with its foreign minister hinting at restraint. Iran, a major oil producer, holds the potential to impact global oil prices.

The possibility of Iran closing the Strait of Hormuz, crucial for global oil and gas flows, raises concerns about economic repercussions. An oil price shock could lead to higher inflation impacting the US economy, possibly delaying rate cuts by the Federal Reserve. Investors may seek safer assets amidst market uncertainty, as seen with Bitcoin and gold prices.

Stock futures tied to major indexes dropped, reflecting market concerns over escalating geopolitical tensions. Oil prices surged over 3%, with both Brent and WTI crude rising. Iran’s response to US strikes and potential impact on global oil prices continue to be key concerns for investors.

Read more: Dow, S&P 500, Nasdaq futures slide, oil rises after US strikes on Iran