Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., March 2, 2026.
Brendan McDermid | Reuters
U.S. Stock futures tumbled Tuesday, undoing a Monday equity comeback, as oil prices spiked again and traders began to worry the U.S.-Iran conflict could go on longer than anticipated.
Futures tied to the Dow Jones Industrial Average lost 832 points, or 1.7%. S&P 500 futures slipped 1.7%, while Nasdaq 100 futures were down 2.2%.
The declines come after the U.S. embassy in Riyadh, Saudi Arabia’s capital was hit by drones earlier in the day. President Donald Trump has also warned that the conflict could continue for more than four weeks. Over the weekend, joint U.S.-Israeli military strikes killed Supreme Leader Ayatollah Ali Khamenei.
Global crude prices continued to surge on Tuesday on worries the tensions could disrupt oil infrastructure and push up fuel prices, adding inflationary risks. An Iranian Revolutionary Guard commander said the Strait of Hormuz — the world’s most vital transit route for crude oil — is closed and that Iran would set ablaze ships attempting the route, Reuters reported, citing Iranian media.
Brent crude popped 9% while West Texas Intermediate futures gained more than 8%.
Stocks staged a massive comeback on Monday, with the S&P 500 and Nasdaq erasing steep losses to close slightly higher. The Dow also closed well off its session lows.
“Historically, what in the near term seems like a geopolitical crisis tends to be largely resolved from a market perspective over the ensuing six months, and where it’s not, it’s often because of an economic downturn that the geopolitical crisis didn’t cause,” Carson Group chief market strategist Ryan Detrick said in a note. “We believe the market has already been pricing in the possibility of a conflict for a month, which may limit the size of a further move and may cause a quicker rebound when the market sees a likely path to resolution.”
Heading into Tuesday, investors are also awaiting key earnings from cybersecurity company CrowdStrike. Quarterly reports from chipmaker Broadcom and membership warehouse giant Costco are due later this week.