US stock futures turned green on Tuesday as investors braced for President Trump’s upcoming deadline for Iran to open the Strait of Hormuz or face strikes to destroy key infrastructure.
Contracts on the S&P 500 (ES=F) and the Dow Jones Industrial Average (YM=F) nudged up roughly 0.1% and 0.2%, respectively. Nasdaq 100 futures (NQ=F) hovered above the flat line after Wall Street stocks finished in positive territory on Monday.
Markets are closely tracking developments in the Middle East. Trump has given another 48-hour deadline for Iran to reopen the Strait of Hormuz, set to expire Tuesday evening. Trump issued the deadline via Truth Social in an erratic post stating “Open the F*****’ Strait, you crazy bastards, or you’ll be living in Hell – JUST WATCH! Praise be to Allah“. A proposal for peace, reportedly backed by Pakistan, is under consideration in negotiations between the US and Iran.
Investor sentiment appears to reflect cautious optimism that tensions may ease in the near term. Trump said, “Unfortunately, the American people would like to see us come home” as he appeared to back away from a ground campaign to seize Iran’s oil.
Brent crude oil futures (BZ=F), the international benchmark, fell 0.7% to about $109 a barrel as investors weighed the chances for deescalation of tensions. Meanwhile, US benchmark West Texas Intermediate (WTI) futures (CL=F) traded broadly flat at around $112.
On the economic front, preliminary figures for February durable goods orders are due Tuesday morning.
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