US Stock Futures Fall as Oil Surge and Middle East Tensions Weigh on Markets

U.S. stock futures moved lower on Monday, pointing to a broader global equity pullback as escalating tensions in the Middle East drove oil prices higher and sustained concerns over stagflation.

Contracts tied to the S&P 500, Nasdaq 100, and Dow Jones Industrial Average declined more than 0.5%, signaling a weaker start to the trading week.

Talks With Iran Collapse

The downturn follows a breakdown in negotiations between U.S. and Iranian officials over the weekend. A delegation led by Vice President JD Vance left talks without securing an agreement, raising uncertainty around the durability of the current ceasefire.

In response, President Donald Trump announced plans to block tankers carrying Iranian energy from exiting the Arabian Sea, intensifying concerns over supply disruptions.

Energy Rally Adds Pressure

Oil and gas prices surged as the conflict showed signs of prolonging, reinforcing upward pressure on inflation and contributing to rising bond yields. The shift in macro conditions has added strain to sectors sensitive to borrowing costs and economic growth expectations.

Tech Stocks Lead Pre-Market Declines

Technology shares led losses in pre-market trading, with chipmakers and data center operators under pressure. Nvidia, AMD, and Amazon each declined more than 1% ahead of the open.

Financials Mixed Ahead of Earnings

Banks and asset managers traded mixed as investors positioned for a busy earnings week. Market participants are expected to focus on the impact of higher yields on lending activity, as well as potential vulnerabilities linked to private credit markets.