US stock futures slipped on Monday as the escalating US–Israeli conflict with Iran showed no signs of easing, keeping markets under pressure. President Donald Trump warned that the US would strike key Iranian power facilities if the Strait of Hormuz is not reopened to commercial shipping soon. In response, Tehran threatened to target US and Israeli assets across the region—including energy, information technology and desalination infrastructure—if its own energy facilities come under attack.
Oil prices opened higher before paring gains, but remained elevated, stoking inflation worries and further dimming hopes for an imminent interest rate cut by the Federal Reserve. Last week, the Dow fell 2.11%, the S&P 500 declined 1.9% and the Nasdaq Composite lost 2.07%, with all three major indexes posting a fourth straight weekly drop. Investors now look ahead to flash US PMI data due Tuesday for clues on how businesses are managing amid rising geopolitical and economic uncertainty.
