US stock futures declined on Monday as the conflict in the Middle East entered its fifth week with no resolution in sight, weighing on global markets. Futures tied to the Dow Jones Industrial Average and the S&P 500 each fell about 0.6%, while Nasdaq 100 futures dropped 0.8%.
Geopolitical tensions intensified after President Donald Trump said he could “take the oil in Iran” and seize its key export hub, Kharg Island, drawing a parallel to the US military operation in Venezuela earlier this year. The US is also reportedly preparing for weeks of ground operations in Iran following the arrival of additional troops in the region.
At the same time, Iran-backed Houthi militants in Yemen expanded the conflict by targeting Israel over the weekend.
Risk-off sentiment was evident on Friday, when selling pressure accelerated on Wall Street as investors cut exposure ahead of the weekend. The Dow fell 1.73%, while the S&P 500 and the Nasdaq Composite lost 1.67% and 2.15%, respectively.
Looking ahead, investors are focused on key US labor market reports in this holiday-shortened week, as well as corporate earnings from Nike, USA Rare Earth, and Conagra Brands.
