US Stock Futures Fall, Oil Rises on Iran Tensions: – Asia Market Wrap
Oil prices rose and US equity-index futures fell as traders became cautious following a weekend flare-up in US-Iran hostilities, dampening hopes that tensions in the Middle East would ease.
Brent jumped 5.7% to $95.50 per barrel after the US Navy detained an Iranian ship following a turbulent weekend in which Tehran fired on vessels and reimposed control over the Strait of Hormuz. S&P 500 futures dipped 0.6% after the underlying index reached a new high on Friday following Iran’s previous claim that the key waterway was “completely open.” Contracts suggested that European shares would fall 1.2% when trading began.
Gold slipped 0.8% to $4,790 per ounce, while silver slid 1%. Bitcoin traded somewhat lower at roughly $74,500. The 10-year Treasury yield increased 2 bps to 4.27%, while European bond futures dipped down.
European natural gas prices rose by up to 11% on Monday, after Tehran closed the chokepoint again on Saturday, claiming that a US blockade of Iran-linked ships violated the ceasefire.
Earlier on Friday, the S&P 500 Index completed a third consecutive week of gains of more than 3% and is on track for its largest monthly increase since 2020. Gauges in Taiwan, Singapore, and China’s CSI 300 Index had all reversed losses caused by the US and Israel’s attacks on Iran in late February.
