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U.S. stock index futures moved lower on Thursday as a surge in oil prices and growing disruption to global shipping routes fueled investor caution.
By 06:38 ET (10:38 GMT), Dow Jones futures fell 251 points (0.5%), while S&P 500 futures declined 28 points (0.4%) and Nasdaq 100 futures dropped 92 points (0.4%).
Oil shock weighs on sentiment
Investor sentiment weakened after oil prices briefly surged back above $100 per barrel, as efforts by global authorities to release record levels of strategic crude reserves failed to ease concerns about supply disruptions tied to the Iran conflict.
A major source of market anxiety has been the effective halt of tanker traffic through the Strait of Hormuz, one of the world’s most critical energy shipping routes. The narrow waterway, bordered by Iran on three sides, normally carries about 20% of global oil and liquefied natural gas shipments.
Shipping companies have largely suspended voyages through the area as they struggle to secure insurance and protect crews amid rising security risks.
Attacks on vessels heighten supply fears
Tensions escalated further after several merchant vessels were struck near the Strait of Hormuz.
The United Kingdom Maritime Trade Operations (UKMTO) reported that a third vessel had been hit by an unidentified projectile on Wednesday, following earlier attacks that left two ships burning off the coast of Iraq. In response to the growing threat, Iraq and Oman have closed key oil export terminals.
The International Energy Agency (IEA) warned that the conflict could result in the largest supply disruption in the history of the global oil market. Despite announcing its largest-ever release of strategic reserves earlier this week, the agency also lowered its global supply outlook.
Inflation fears and rate concerns
The escalating conflict between the United States, Israel, and Iran has triggered sharp swings in oil markets, with Brent crude last trading 5.3% higher at $96.88 per barrel after earlier briefly surpassing the $100 mark. Earlier in the week, prices had spiked to nearly $120 per barrel.
The surge in energy prices has raised fears of renewed global inflation, prompting investors to reconsider expectations for interest rate cuts by central banks such as the U.S. Federal Reserve. Rising bond yields have further weighed on equity markets.
Mixed signals from Wall Street
On Wednesday, the Dow Jones Industrial Average fell to its lowest closing level of the year, reflecting concerns that higher energy costs could squeeze both businesses and consumers.
However, losses were more limited in other indices. The S&P 500 ended only slightly lower, while the Nasdaq Composite managed a modest gain, supported by stronger-than-expected results from Oracle, which issued an optimistic outlook for artificial intelligence data center demand.
Meanwhile, U.S. consumer price data for February came in broadly in line with expectations, though the recent spike in oil prices has clouded the outlook for inflation.
Adobe earnings in focus
Investors are also awaiting upcoming earnings from Adobe, with markets watching closely for signs of how the software giant is navigating growing disruption from artificial intelligence.
The emergence of powerful AI tools has raised concerns that new technologies could challenge parts of the traditional software-as-a-service industry. The S&P 500 Information Technology sector has already fallen more than 3% this year, reversing some of the strong gains recorded in 2025.
Adobe’s shares have reflected these concerns, dropping more than 17% since the start of the year.
Despite the pressure, Adobe has been expanding its AI capabilities through products such as Firefly and Adobe Express, integrating generative AI features across its Creative Cloud ecosystem. The company recently projected fiscal 2026 revenue between $25.9 billion and $26.1 billion, with earnings per share expected to reach $23.30 to $23.50, both above Wall Street forecasts.
Elsewhere in corporate news, Dollar General shares fell after the retailer issued a comparable sales outlook that disappointed investors, signaling ongoing challenges in attracting cost-conscious shoppers.
