US stock futures plunged on Monday while oil prices surged, as military strikes by the US and Israel on Iran jolted global markets.

Dow Jones Industrial Average futures (YM=F) tumbled 1.6%, or over 800 points. Contracts on the S&P 500 (ES=F) sank 1.7%, while those on the tech-heavy Nasdaq 100 (NQ=F) dived 2% as the escalating Middle East conflict spurred a retreat from risk assets.

The strikes on Iran began late Saturday after Tehran rejected US demands to scale back its nuclear program. Its Supreme Leader Ali Khamenei died in the bombing campaign, and Iranian leaders have promised a strong response, raising the possibility of a broader regional confrontation. President Trump has said the strikes will continue until the US achieves its objectives.

Iran is OPEC’s fourth-largest producer, and oil prices jumped in the immediate aftermath, with Brent crude futures (BZ=F) surging 13%. The international benchmark moderated gains to around 10% on Monday, but still topped $80 a barrel. US benchmark West Texas Intermediate (CL=F) traded just above $73, up around 9%. Gold (GC=F) futures also jumped.

The geopolitical shock adds to an already uneasy environment for equities. The S&P 500 (^GSPC) ended Friday lower and closed February in negative territory as renewed volatility in artificial intelligence and software stocks rattled markets. Investors have increasingly questioned whether rapid AI adoption could undermine traditional software companies’ business models.

Headlining the week’s economic calendar is Friday’s February jobs report, with Wall Street expecting the US to have added 60,000 jobs, down from January’s stronger-than-expected 130,000 gain that eased recession fears.

In corporate news, earnings season continues, with Broadcom (AVGO) reporting on Wednesday, followed by Marvell Technology (MRVL) on Thursday. Retail earnings will also be in focus, led by Target (TGT) and Costco (COST).

Yahoo Finance's Ines Ferré reports:

Bitcoin (BTC-USD) dropped below $67,000 on Sunday night after recovering from a sharp sell-off immediately following US-Israel air strikes on Iran and subsequent counterattacks in the region.

The token fell roughly 2% over the past 24 hours, as US stock futures also moved lower as the Middle East conflict rattled global markets.

The world’s largest cryptocurrency dropped to around $63,255 early Saturday amid the strikes. That same day it climbed above $68,000 as reports spread that Iran’s Supreme Leader Ayatollah Ali Khamenei had been killed.

Ether (ETH-USD) also traded near $1,950 on Sunday after tumbling roughly 10% in the wake of the attacks.

“Crypto’s resilience in the face of geopolitical escalation is constructive and suggests room for tactical upside as defensive positioning unwinds” Sean Farrell, head of digital assets at Fundstrat, told Yahoo Finance on Sunday.

However, the strategist noted that geopolitical sell-offs are typically buyable unless they lead to a more sustained economic impact, in this case through energy markets.

Read more here.

Bloomberg reports:

Gold (GC=F) rose, as war in the Middle East rattled markets and sent investors flocking to safer assets.

Bullion climbed more than 2% to around $5,390 an ounce in early trading, having gained more than 3% in the previous week as American troops amassed in the region. Conflict spread over the weekend after the US and Israel attacked Iran and Tehran responded with waves of missiles at targets in multiple countries. Iran’s supreme leader, Ayatollah Ali Khamenei, was killed on the first day of strikes.

Wider geopolitical tensions and US President Donald Trump’s upheaval of international relations have been key factors in a long-running rally for gold, which has also been supported by elevated central-bank buying and a wider investor shift away from sovereign bonds and currencies. The metal has gained about a quarter so far this year, despite an abrupt pullback from a record high above $5,595 an ounce at the end of January.

Bullion posted its seventh consecutive monthly gain in February, the longest streak since 1973. Even ahead of the war with Iran, Trump had adopted an increasingly aggressive foreign policy. US troops seized Venezuela’s then-president Nicolás Maduro in January and the administration made threats to annex Greenland.

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Yahoo Finance's Jake Conley reports:

Oil futures surged upward on Sunday evening as traders price in the first open market session after the start of an escalating conflict in the Middle East that is increasingly threatening energy infrastructure.

Futures on Brent crude (BZ=F), the international pricing benchmark, jumped by 13% to trade above $82 per barrel in the first minutes of open trading, while those on US benchmark West Texas Intermediate (CL=F) crude, rose by nearly 10% to cross $70 per barrel.

The price on Brent marks a level not seen since January 2025 as the conflict in Iran has engulfed the entire region, while WTI reached levels not seen since 2025's \\"12-day war.\\"

Gold (GC=F) also picked up more than 2% as investors ran to the precious metal for its flight-to-safety status, while the US dollar (DX-Y.NYB) appreciated by roughly 0.3%. Shares in Saudi Aramco (2223.SR) rose by more than 3% in the Middle Eastern trading session on the prospect for higher oil prices.

Beginning early Saturday morning, the US and Israel have launched a massive barrage of air strikes into Iran in what President Trump has called a bid to destroy the country's nuclear program and potentially remove the current regime from power. Iranian Supreme Leader Ali Khamenei, who had led Iran for more than 30 years, was killed on Saturday, President Trump said in a Truth Social post.

Read more here.