Oil Prices Surge as US-Iran Conflict Escalates

The Nasdaq futures hit a four-week low as investors scrambled to price in the risk of renewed hostilities across the Middle East. Tensions reached a boiling point after Iran’s Revolutionary Guards targeted US military installations, a direct retaliation for American strikes following attacks on oil tankers in the Strait of Hormuz. This critical maritime corridor remains the world's primary artery for crude shipments, making any volatility there an immediate threat to global energy supplies.

Brent and US West Texas Intermediate crude futures climbed more than 5%, driving premarket rallies for energy giants including Chevron, Exxon Mobil, and Devon Energy. While the energy sector saw gains, broader market sentiment remains fragile. Investors are currently parsing the Federal Reserve’s June meeting minutes, searching for clarity on inflation trajectories and the central bank's stance on future economic performance amidst this geopolitical instability.