United States stock futures slipped on Wednesday night (Thursday AEDT) as investors continued to monitor rising oil prices and the economic implications of the escalating conflict involving Iran.
By 10:20 am AEDT (11:20 pm GMT), futures linked to the Dow Jones Industrial Average had fallen 0.7%, while S&P 500 futures and Nasdaq 100 futures were both down 0.6%.
The declines followed a mixed performance on Wall Street during the regular session, where the Dow Jones Industrial Average and the S&P 500 both closed lower while the Nasdaq Composite posted a marginal gain.
Investors remained cautious throughout the session as oil prices continued to climb amid the ongoing war between the United States and Iran, raising concerns that higher energy costs could add to inflationary pressures and weigh on global economic growth.
West Texas Intermediate and Brent crude futures both settled more than 4% higher during the session. The rise in oil prices came despite an announcement by the International Energy Agency that it would release 400 million barrels of oil from its reserves in an attempt to ease supply disruptions linked to the conflict.
The conflict has disrupted tanker traffic through the Strait of Hormuz, a key global shipping route responsible for transporting roughly a fifth of the world’s oil supply.
US forces reportedly sank 16 Iranian vessels capable of laying mines near the strategic waterway on Tuesday after Tehran attempted to threaten tanker movements through the corridor.
The growing risks facing maritime traffic have prompted new measures to safeguard shipping in the region.
Insurance group Chubb was named the lead underwriter for a U.S. government-backed programme designed to provide insurance coverage for vessels attempting to transit the Strait of Hormuz.
U.S. President Donald Trump also said on Wednesday that he would tap the Strategic Petroleum Reserve in an effort to lower energy prices and stabilise markets.
The remarks followed comments earlier in the week in which the president said the conflict would end “very soon”, a statement that briefly helped ease some of the upward pressure on crude prices after they surged above $100 per barrel.
Despite that temporary reprieve, traders remain focused on the potential economic consequences of sustained higher oil prices.
In addition to geopolitical developments, investors are preparing for several key economic data releases that could influence market sentiment.
Weekly U.S. jobless claims and housing starts data are scheduled for release on Thursday morning in the United States (Friday AEDT).
The personal consumption expenditures price index, the Federal Reserve’s preferred measure of inflation, is due on Friday (Saturday AEDT).