Iran Tensions Spark Rate Hike Fears and Oil Price Surge

Wall Street futures fell on Wednesday as oil prices and Treasury yields rose in response to increased tensions between the US and Iran.

The escalating situation has revived inflation concerns, with markets pricing in a 68% chance of a rate hike in September, up from 37% just last week. Ryan Isherwood, founder and CEO of Significance Capital, said 'If hostilities are going to increase, they are likely to increase within the next couple of weeks.'

Investors are also contending with seasonal weakness, as the S&P 500 has lost an average of 0.7% in September since 1926. Energy stocks were among the few gainers, with Chevron and Valero Energy each up 0.4%.