U.S. stock futures declined and oil prices surged Sunday evening after President Donald Trump labeled Iran’s latest response to the U.S. proposal for ending the conflict as “totally unacceptable.”
The comments came just hours before the start of the trading week, signaling renewed geopolitical tensions between the two nations. Investors reacted by moving away from risk assets and toward safe havens.
Futures for the Dow Jones Industrial Average fell by more than 200 points, while S&P 500 and Nasdaq-100 futures also showed significant losses. The moves reflected growing uncertainty in global markets.
Oil prices jumped sharply, with West Texas Intermediate crude climbing over 3% in early electronic trading. Analysts pointed to the potential for supply disruptions in the Middle East as a key driver.
The president’s statement rejected any immediate diplomatic resolution, raising fears of prolonged conflict. Market participants now brace for possible further escalation in the region.
Treasury yields edged lower as investors sought safety in government bonds. The yield on the 10-year note dropped several basis points, a classic flight-to-quality move.
Gold prices also rose, extending gains from the prior week. The precious metal has historically benefited from periods of geopolitical uncertainty and market volatility.
Trading volumes remain thin ahead of the U.S. trading session, which could amplify price swings. Market watchers expect increased volatility in the coming days.
The energy sector is likely to remain in focus, with oil-sensitive currencies such as the Canadian dollar under pressure. Meanwhile, the Japanese yen and Swiss franc strengthened against the dollar.
