Oil Surges, Wall Street Slides as U.S.-Iran Tensions Escalate

U.S. stock futures fell Monday, September 28, with Dow futures down roughly 250 points, S&P 500 futures off about 0.6%, and Nasdaq futures down near 1%, as renewed tensions between the United States and Iran rattled markets. Reports indicated Washington rejected Tehran's latest proposal to reopen the Strait of Hormuz, reviving a geopolitical risk premium that had eased just days earlier.

The escalation sent crude oil sharply higher, with West Texas Intermediate jumping more than 4% to above $96 a barrel and Brent crude climbing past $108. The move offers a lift to integrated energy producers such as Chevron and BP, while adding fresh fuel-cost pressure on airlines including Delta and American, both of which had rallied last week on the opposite trade.

The reversal underscores how quickly sentiment tied to the Strait of Hormuz talks can swing across sectors. Treasury yields also climbed alongside the oil move, adding pressure on rate-sensitive parts of the market ahead of a data-heavy week featuring the PCE inflation report and the September jobs report.