US Stock Futures Decline Amid Middle East Tensions

U.S. stock index futures declined on Monday as escalating tensions in the Middle East conflict between the United States, Israel, and Iran heightened fears of disruptions to global energy supplies, driving oil prices higher and prompting investors to revise expectations for Federal Reserve interest rate cuts.

The downturn followed a weekend of sharp rhetoric. President Donald Trump issued a 48-hour ultimatum to Iran via a social media post on Saturday, demanding the full reopening of the Strait of Hormuz and threatening strikes on the country's power plants, starting with the largest, if Tehran failed to comply. Iran's Revolutionary Guards responded with a statement warning that they would target power plants in Israel and facilities supplying U.S. bases in the Gulf, along with allied energy and water infrastructure across the region, including desalination plants in Saudi Arabia and the United Arab Emirates. The exchange marked the most direct threats to civilian infrastructure since the conflict began on February 28, reversing earlier signals of possible de-escalation and raising the prospect of a broader regional blackout.

At 4:43 a.m. ET, Dow Jones Industrial Average E-minis...