Wall Street futures slide over 1%, Nasdaq down 2% as US-Iran war rattles markets; Brent jumps near $80

Wall Street

• Wall Street futures drop 2% amid US-Iran conflict
• Oil prices surged nearly 10 percent on supply disruption fears
• Gold and dollar rally as safe-haven assets amid market turmoil

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Wall Street futures tumbled as much as 2 percent on Monday afternoon (India time) as the eruption of war between the US and Iran triggered a global risk-off move, sending oil sharply higher and driving investors toward traditional safe havens.

S&P 500 futures fell 1.5 percent, while Nasdaq 100 contracts dropped 1.9 percent. Futures on the Dow Jones Industrial Average were down 1.6 percent, pointing to a sharply lower open on Wall Street. The losses mirrored weakness across regions, with the MSCI Asia Pacific Index and the MSCI Emerging Markets Index each falling 1.8 percent.

In Europe, the Stoxx Europe 600 declined 1.8 percent by mid-morning in London, as banking and travel stocks led losses. British Airways owner IAG slumped more than 6 percent amid disruptions to Middle East air traffic.

• Also read | Strait of Hormuz comes to a standstill as West Asia conflict escalates, India-bound tankers drop to zero

The sharp move followed fresh US and Israeli strikes on Iran over the weekend and retaliatory missile attacks by Tehran, raising fears that the conflict could broaden and disrupt energy supplies. Media reports indicated US President Donald Trump suggested the confrontation could last several weeks.

Oil markets reacted swiftly. Brent crude surged 9.6 percent to $79.86 a barrel, after trading even higher earlier. Investors were watching the situation for the implications for the Strait of Hormuz -- a key transit route for roughly a fifth of global oil flows. European gas prices also spiked sharply on concerns about supply disruptions.

Safe-haven assets rallied as investors cut exposure to equities. Spot gold rose 2.5 percent to $5,410.29 an ounce, extending gains above the $5,400 mark. The dollar strengthened in haven demand, while US Treasuries initially gained before paring advances, with the 10-year yield hovering near recent lows.

The geopolitical shock comes at a sensitive moment for markets, with a busy week of US economic data ahead, including manufacturing surveys, retail sales and labour market indicators.

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