US stock futures pulled back on Friday, while oil resumed its rally as investors weighed the odds the US might attempt to take over a key Iranian island to help unblock the Strait of Hormuz.
Contracts on the Dow Jones Industrial Average (YM=F) and the S&P 500 (ES=F) fell 0.3% and 0.4%, respectively. Meanwhile, Nasdaq 100 futures (^IXIC) slid 0.5%, following a downbeat day on Wall Street.
Stocks are retreating as investors assess an Axios report that the Trump administration is considering plans to occupy or blockade Kharg Island, vital to Iran’s oil exports. The risky operation would aim to put pressure on Tehran to reopen the Strait of Hormuz to tanker shipping.
Oil prices are being whipsawed with markets on edge for every headline in the fast-moving Middle East conflict. On Friday, Iran pressed ahead with attacks on Persian Gulf neighbors as analysts warned existing damage would keep oil prices elevated. Brent (BZ=F) futures reversed an earlier around 1% gain to trade near $108 a barrel, while West Texas Intermediate (CL=F) futures turned lower to hover above $95.
The major US stock gauges are on track for a fourth weekly decline in a row, with the Dow (^DJI) and Nasdaq Composite (^IXIC) both nearing correction territory.
LIVE 9 updates
