U.S. stock futures are slightly higher as the world waits to see if Iran retailiates after a surprise U.S. strike on Iran over the weekend.
President Donald Trump called the attack “a spectacular military success” in a televised address to the nation and said Iran’s nuclear enrichment facilities had been “obliterated” though other officials’ statements were more measured. Trump said the U.S. military could go after other targets in Iran if the country did not agree to peace.
At 6 a.m. ET, futures linked to the blue-chip Dow added 0.1%, or 44 points, to 42,559, while broad S&P 500 futures gained 0.19%, or 11.5 points, to 6,029.50 and tech-heavy Nasdaq futures inched up 0.15%, or 33 points, to 21,877.75. The benchmark 10-year Treasury yield edged up to 4.391%.
Investors are worried if tensions escalate, how they could affect the economy, oil prices and inflation and interest rates. Oil prices intially rose to a five-month high but pared gains. They were last up 0.49% to $74.20 per barrel.
Whether oil prices climb higher will depend on next actions by the U.S. and Iran. Higher oil prices could ignite inflation.
“The immediate-term focus is on whether Iran will close the Strait of Hormuz, through which 20% of the world’s oil supply travels,” said Mike O’Rourke, chief market strategist at JonesTrading.
A member of the Iranian parliament’s National Security commission said “for now, [parliament has] come to the conclusion we should close the Strait of Hormuz, but the final decision in this regard is the responsibility of the Supreme National Security Council,” according to Reuters.
U.S. Secretary of State Marco Rubio called on China to prevent Iran from blocking the Strait of Hormuz in retaliation for U.S. airstrike. China is the biggest buyer of Iranian oil and the two countries are friendly.
China said it “strongly” condemned the U.S. attack on Iran and said it violated the UN Charter and international law. It called for a ceasefire but didn’t offer Iran any substantial assistance.
Iran could also retailiate by striking U.S. bases in the region, but Trump has said that will be met with great force.
The latest: US warns of ‘heightened threat environment’ after strikes on Iran nukes: Live updates
Bitcoin initially fell below the key psychological $100,000 level amid jitters from the U.S. strikes on Iran but has since regained the level.
Metaplanet, the Tokyo-listed hotel firm known for its bitcoin acquisition strategy, has acquired 1,111 bitcoin for $117 million. It paid an average of about $105,681 each.
