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U.S. stock futures moved lower on Friday, while oil prices climbed back above the $110-per-barrel mark, as investors remained uneasy despite President Donald Trump extending a key deadline tied to potential strikes on Iranian energy infrastructure.
As of 07:33 ET (11:33 GMT), Dow Jones futures fell by 169 points, or 0.4%, S&P 500 futures declined by 27 points, or 0.4%, and Nasdaq 100 futures dropped 148 points, or 0.6%. The cautious tone follows losses on Wall Street in the previous session, as uncertainty continues to surround the trajectory of the ongoing conflict in the Middle East.
Geopolitical risks remain firmly in focus, with fighting between Israel and Iran continuing and no clear signs of de-escalation. The Strait of Hormuz remains effectively closed to tanker traffic, raising concerns about global energy supply disruptions. The situation has been further complicated by reports of growing U.S. military presence in the region, fueling speculation about a potential escalation in the form of a broader intervention.
Late Thursday, Trump announced an extension of the deadline for Iran to reopen the Strait of Hormuz or face U.S. attacks on its energy facilities, pushing the cutoff to April 6. The move was framed as a response to what he described as ongoing and productive discussions with Tehran, although Iranian officials have publicly denied that any negotiations are taking place.
The lack of clarity surrounding diplomatic efforts has kept markets on edge. Trump had initially issued an ultimatum threatening strikes on Iranian power infrastructure if the waterway was not reopened within a tight timeframe, underscoring the high stakes tied to the conflict.
Meanwhile, diplomats from the Group of Seven are set to meet in France, where discussions are expected to focus on coordinated efforts to address the crisis and potentially restore access to the Strait of Hormuz. However, calls from Washington for international support have so far received limited backing.
Oil markets reflected the ongoing tension, with prices rising above $110 per barrel amid fears of prolonged supply disruptions. Elevated energy costs continue to pose a risk to global inflation and economic growth, adding another layer of concern for equity investors.
Looking ahead, markets will also be watching the release of the final University of Michigan consumer sentiment index for March, which could provide further insight into how U.S. households are responding to rising geopolitical risks and energy prices.
Overall, financial markets remain highly sensitive to developments in the Middle East, with investors balancing the potential for diplomatic progress against the risk of further escalation and its broader economic implications.
