Futures Flat as Traders Monitor Oil Prices

Stock futures were little changed on Monday even after the United States entered Israel’s war against Iran over the weekend by striking three nuclear sites as the increase in oil prices was relatively tame.

Futures for the Dow Jones Industrials dived 59 points, or 0.1%, to 42,456.

Futures for the S&P 500 index lost 4.5 points, or 0.1%, to 6,013.5

Futures for the NASDAQ slid 32 points, or 0.1%, to 21,812.75.

The U.S. launched attacks Saturday at Iranian sites in Fordo, Isfahan and Natanz, surprising investors who were expecting more diplomacy to possibly take place after Trump said on Friday that he would make a decision to attack Iran “within the next two weeks,” according to the White House.

Oil prices had already spiked in recent weeks following the increased tensions in the Middle East. U.S. crude oil futures on Sunday night reached highs not seen since January before paring those gains. WTI was last about 1% higher at $74.68 per barrel.

Trump said in a Saturday evening speech from the White House after the attacks, that “there will be either peace, or there will be tragedy for Iran far greater than we have witnessed over the last eight days.”

Now traders braced for Iran’s retaliation with the hope that the country would not use an option that could risk a broader conflict and the removal of the regime there. Iran could target U.S. personnel in nearby bases or close the Strait of Hormuz, which would majorly disrupt global oil flows.

A prolonged blocking of the strait could boost oil prices above $100 per barrel. In a Sunday interview, with Fox News, U.S. Secretary of State Marco Rubio called for the Chinese government to step in and prevent Iran from closing the key trade route. China remains Iran’s most important oil customer.

In Japan, the Nikkei 225 index skidded 0.1% Monday, while in Hong Kong, the Hang Seng climbed 0.7%

Oil prices forged up a dollar to $74.84 U.S. a barrel.

Gold prices shone brighter $6.90 to $3,392.60 U.S. an ounce.