Cnbc Futures Sink as Trump Iran Warning Lifts Oil and Geopolitical Risk

Cnbc Futures fell Sunday night as Trump’s Iran warning lifted oil prices and raised fresh geopolitical risk ahead of major earnings.

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Jennifer Walsh
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Business reporter focused on retail, consumer spending, and the gig economy. Regular contributor to Bloomberg and MarketWatch.
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Dow futures drop 400 points as Iranian war tensions escalate: Live updates

Stock futures fell sharply Sunday night after President said an Iranian ship had been intercepted by U.S. naval forces and warned Tehran that there would be “NO MORE MR. NICE GUY!” if it did not agree to U.S. demands. Futures tied to the Dow Jones Industrial Average dropped roughly 0.8%, while contracts linked to the S&P 500 and Nasdaq 100 each fell 0.7%.

Trump said in a post on that the Iranian ship, TOUSKA, had been stopped by U.S. forces. He wrote that the Iranian crew “refused to listen,” and said the Navy had blown a hole in the engine room before took custody of the vessel. In later posts, he threatened to target Iranian energy and civil infrastructure if Tehran did not comply with U.S. demands.

The market reaction was immediate. West Texas Intermediate crude surged about 6.9% to trade just below $90 per barrel, while Brent climbed a similar amount to near $95 per barrel. Traders appeared to be pricing in the chance that rising tensions could disrupt oil supplies from the region, adding another layer of uncertainty to a week that already carries a heavy earnings calendar.

The futures drop came at the start of a week when , and are set to report results, giving investors little room to ignore fresh geopolitical risk. The combination of higher oil prices and lower stock futures suggested markets were treating Trump’s warning as more than rhetoric, with energy costs and corporate outlooks both now in view before trading opens Monday.

What happens next depends on whether the confrontation widens or cools, but for now the message from the market was plain: investors are starting the week braced for more pressure from the .

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