US Stock Futures Drop, Oil Jumps on Iran Conflict: Markets Wrap

Global markets reacted sharply to escalating Middle East tensions on March 1, 2026, as a US-Israeli strike on Iran triggered widespread volatility. Investors fled risk assets, driving contracts for the S&P 500 and Nasdaq 100 down roughly 1% at market open. Crude oil spiked up to 13% amid fears of supply disruptions after the Strait of Hormuz effectively closed, though gains later moderated. The conflict’s impact on global energy flows sent traders scrambling for safe-haven assets. Asia-Pacific equities declined, with MSCI’s regional benchmark dropping 0.4% as uncertainty spread. The dollar surged as traders braced for prolonged geopolitical instability and potential economic fallout. The missile strike on Tehran marked a turning point in the conflict, prompting immediate market repricing. Analysts warned of sustained turbulence if hostilities expand further. Haven assets like gold and bonds saw increased demand, reflecting deepening investor anxiety over war-driven economic risks. Markets now await further developments in the US-Israeli-Iran standoff.