NEW DELHI — U.S. stock markets were poised to open sharply lower Tuesday as escalating tensions in the Middle East unsettled investors and pushed oil prices higher.
Futures tied to the S&P 500 and the Dow Jones Industrial Average were down nearly 2% in premarket trading, while Nasdaq Composite futures dropped about 2.5%, signaling a weak start for Wall Street.
The selloff comes amid rising tensions involving the United States, Israel and Iran. Concerns about potential disruptions to global oil supplies have kept crude prices elevated, fueling worries about renewed inflationary pressures for consumers.
Technology stocks, which had recently posted gains, were under pressure before the opening bell. Nvidia fell 3.1% in premarket trading, while Microsoft declined 1.8%.
Memory chip makers also saw steep losses following a strong February rally. SanDisk dropped 8.4%, and Western Digital slid 5.6%.
Energy and defense stocks were among the few bright spots. Occidental Petroleum rose 3.7%, and Cheniere Energy climbed 9.8% in early trading. Defense contractors including Lockheed Martin and AeroVironment also traded higher.
Market volatility intensified after reports that Iran had stepped up attacks in the region, targeting energy infrastructure in Gulf countries and oil tankers. Tehran reportedly launched drone strikes near the U.S. Embassy in Riyadh and threatened to close the Strait of Hormuz.
The strategic waterway off Iran’s coast handles nearly 20% of the world’s oil supply, along with a significant share of global liquefied natural gas shipments.
Oil prices extended gains for a fourth straight session. Brent crude, the global benchmark, moved above $80 per barrel and reached an intraday high of $82.24 after surging roughly 7% on Monday. West Texas Intermediate traded near $75.50 per barrel.
Saudi Aramco halted operations at its Ras Tanura refinery following a drone strike in the area, while Qatar suspended liquefied natural gas production at its largest export facility after it was targeted in an attack.
Investors are closely monitoring developments in the region as energy markets remain volatile and geopolitical risks mount. (Source: IANS)
