Stock Futures Drop, Oil Rises as Israel-Iran Cease-Fire Hopes Fade

Stocks were on course to open in the red on Tuesday as Iran and Israel continued to exchange missile strikes and a series of social-media posts by President Donald Trump dashed the market’s hopes that the conflict between the two countries could de-escalate.

Futures tracking the Dow Jones Industrial Average dropped 264 points, or 0.6%. S&P 500 futures and contracts tied to the tech-heavy Nasdaq 100 also fell 0.5%.

The three blue-chip indexes had closed higher on Monday, with investors hopeful that the geopolitical crisis in the Middle East could be resolved. They looked set to give up some of those gains after Trump called for the evacuation of Tehran in a post on his Truth Social platform, stoking fears that the conflict will drag on.