Oil Rises on Israel-Iran Report, Stock Futures Fall
Oil rose and U.S. stock futures fell slightly after a CNN report said U.S. intelligence has indicated Israel is preparing for a possible strike on Iran’s nuclear facilities.
West Texas Intermediate crude rose 1.6% to $63.55 a barrel. It was unclear whether Israeli leaders had made a final decision to carry out a strike, CNN said, citing unnamed officials. Futures for the S&P 500 and Nasdaq 100 fell more than 0.1%. The Swiss franc and yen, traditional safe havens, rose slightly.
Geopolitical tensions could add to the drag on markets, which have recently eased after a month of turmoil over tariffs imposed by U.S. President Donald Trump. Investors are scrutinizing charts for clues on whether the rally in stocks can last, with the S&P 500 nearing a level that some technicians consider a sign of overheating after six straight days of gains put the index on the brink of a bull market.
“There’s no doubt that momentum in equity markets is strong. That said, the market is overbought in the near term, so it could see a pause at any time,” said Matt Maley at Miller Tabak. “But unless that pause turns out to be a serious reversal, a retest of those all-time highs is very likely.”
Source: Bloomberg
