Equity futures point to a sharply lower opening this morning as an escalation in hostilities between the U.S. and Iran sends oil prices surging and puts broad pressure on stocks.
Oil-driven volatility played a role in yesterday’s lower finish for the major averages, with President Trump revoking the waiver that allowed Iran to sell oil after Iran struck several commercial ships in the Strait of Hormuz.
Tensions escalated further overnight, with President Trump declaring the ceasefire over and Axios reporting that fresh U.S. strikes on Iran were four or five times bigger in scope than previous strikes.
WTI crude oil is currently up $3.60 (+5.1%) to $74.04 per barrel.
Elsewhere, semiconductor stocks are on track for another lower opening, with concentrated pressure across the group weighing on the major averages yesterday. Memory names are among the worst performers in the premarket.