US stock futures tumbled but trimmed some losses early Monday on hopes for an easing in the oil supply squeeze, after crude prices surged past the $100-a-barrel mark amid fears of a prolonged Middle East conflict.
Dow Jones Industrial Average futures (YM=F) were down 1.2% after plunging more than 1,000 points overnight. Contracts on the S&P 500 (ES=F) and the Nasdaq 100 (NQ=F) sank 1% and 1.1%, respectively. All three indexes had tanked more than 2% in earlier out-of-hours trading.
Oil prices were coming off earlier highs after spiking around 25% late Sunday to top $119 a barrel, reaching levels not seen since 2022. The spike came as conflict in Iran spurred crude-producing countries to cut output, already curbed by the virtual closure of the Strait of Hormuz shipping corridor. Kuwait confirmed unspecified production cuts, while Iraqi output is reported to have plunged about 70%.
Amid the supply crunch, ministers from the G7 top economies will meet on Monday to discuss a possible joint release of petroleum from IEA reserves, per media reports. The US and two other countries are said to back the move, which appears to have soothed nerves rattled on Sunday by Trump suggesting high costs were “a very small price to pay” for security.
West Texas Intermediate (CL=F) crude futures were trading at around $103 a barrel, while global benchmark Brent (BZ=F) futures changed hands above $107. Both were about 15% higher.
The sell-off in stocks followed a bruising stretch last week, which saw the Dow (^DJI) lose roughly 3%, marking its steepest weekly drop since tariff concerns from the Trump administration rattled markets in April 2025. The S&P 500 (^GSPC) slid about 2%, while the Nasdaq Composite (^IXIC) finished down over 1%.
Looking to domestic economic reports, investors will be watching closely for Wednesday’s Consumer Price Index and Friday’s Personal Consumption Expenditures index readings, though both won’t capture the effect of oil’s dramatic recent surge on price pressures just yet.
On the corporate front, earnings season continues, with Oracle (ORCL) and Adobe (ADBE) the highlights this week.
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