US stock futures slipped during early trading hours as escalating hostilities in the Middle East drove oil prices to a six-week peak. Brent crude climbed above $97 per barrel following intensified tanker s between Iran and the United States, marking the largest exce of such strikes to date.
Markets reacted cautiously. S&P 500 futures dropped 0.2% by 9:00am Eastern Time, while Nasdaq futures also edged lower. Asian markets showed divergent performance, with South Korea’s Kospi surging 4.6% and Japan’s Nikkei jumping nearly 2%. Hong Kong’s Seng bucked the trend, falling 1%.
What’s driving the oil price spike? Traders assessed reports of strikes on Saudi Arabian oil infrastructure alongside news of a potential agreement between Iran and Oman regarding shipping routes through the Strait of Hormuz. The yen strengthened to its highest level since February, while the dollar weakened 0.2%.
US markets remained closed for Labor Day, with cash trading suspended. Friday’s jobs report had already set the stage for market volatility, with payrolls rising 162,000 and exceeding forecasts. Attention now shifts to upcoming inflation data and central bank decisions that could reshape monetary policy expectations.
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