U.S. Stock Futures Fall as Iran, Oil and AI Risks Rattle Markets

U.S. stock futures declined Monday as investors weighed renewed U.S.-Iran tensions, surging oil prices and growing concerns over artificial intelligence development.

By 03:50 ET, S&P 500 futures were down 0.42% at 7,710.7, while Nasdaq 100 futures dropped 1% to 30,595. Dow Jones futures also fell about 0.4%.

Geopolitical uncertainty intensified after President Donald Trump rejected an Iranian proposal aimed at ending the conflict and reopening the Strait of Hormuz. Iran said diplomacy remained the only path toward resolving tensions with the U.S. and Israel but maintained its conditions for restoring normal traffic through the crucial waterway.

The Strait of Hormuz is a major route for global energy shipments, making prolonged disruption a significant risk for oil supplies and inflation.

Brent crude futures climbed 1.1% to $105.48 a barrel, while U.S. West Texas Intermediate crude gained 0.8% to $93.12. Sustained oil prices above $100 could increase transportation and fuel costs, complicating the inflation outlook and potentially limiting central banks’ ability to lower interest rates.

Technology stocks also faced pressure after OpenAI paused training on some advanced AI models amid concerns about unexpected behavior by AI agents. The development comes as Trump prepares to meet Anthropic CEO Dario Amodei amid a broader debate over AI safety and increasingly autonomous systems.

Greater scrutiny of AI development could have implications for the technology sector after massive investment in chips, cloud computing and data centers helped fuel market gains.

Meanwhile, Boeing drew attention after The Wall Street Journal reported a software glitch affecting the 737 MAX. The issue can disable an automated navigation function during certain landing situations following a missed approach.

Boeing has notified operators and is developing a software fix. The company said the problem does not pose a safety risk, though investors are watching for any additional regulatory action.

With geopolitical risks, elevated oil prices, AI uncertainty and Boeing’s software issue in focus, Wall Street entered the new week under renewed pressure.