US Futures Slip, Oil Climbs on Renewed Iran Threat: Markets Wrap

US stock futures declined and oil prices increased on Tuesday, May 7, 2024, following renewed threats from President Donald Trump to strike Iran, which clouded ongoing talks between Washington and Tehran. The S&P 500 futures were down 0.2%, while Dow Jones Industrial Average futures slipped 0.15%. The Nasdaq 100 futures also saw a decrease of 0.25%. This geopolitical tension contributed to a rise in crude oil prices, with Brent crude futures climbing 1.1% to $75.50 per barrel and West Texas Intermediate (WTI) crude futures up 1.3% at $70.20 per barrel. In currency markets, the British pound weakened against the US dollar, falling 0.4% to $1.2520, amid speculation concerning the political future of UK Prime Minister Keir Starmer. The FTSE 100 index in London was down 0.5%, while the DAX in Germany fell 0.3% and the CAC 40 in France dipped 0.4%. Investors are closely monitoring economic data releases this week, including US non-farm payrolls and inflation figures, for further direction.