S&P 500 Futures Tumble Amidst Escalating US-Iran Conflict

The S&P 500 futures declined by around 0.3% on Monday as US-Iran tensions escalated, pushing oil prices above $90 and sparking rate hike fears.

Brent crude surged roughly 2.8% to $90.60 after the US military attacked Iranian missile launchers on Larak Island, prompting a retaliatory strike from Iran against American forces in Jordan.

The attack on Kharg Island, which handles most Iranian crude exports, could create physical supply disruptions and further pressure inflation by increasing transportation costs.

Fed Chair Kevin Warsh's comments at Jackson Hole reinforced rate hike bets, with markets pricing a 57% probability of a September increase, up from earlier expectations.