US equities ended the week on a weaker note on Friday amid rising fears of an escalation in the Iran conflict, with the Dow Jones Industrial Average closing 119 points lower. The S&P 500 logged its third consecutive weekly decline, shedding 1.6 per cent, while the Dow posted a steeper weekly fall of nearly 2 per cent. Equity futures showed a modest rebound in early trade. Dow Jones futures rose around 170 points, while Nasdaq futures gained 0.5 per cent, suggesting a cautious but positive start as investors reassess geopolitical risks.
Tensions in the Middle East escalated after the US carried out strikes on Iranian military assets on Kharg Island over the weekend. Officials, however, said the attack did not target or damage key oil infrastructure. President Donald Trump warned that the US could strike Iranian energy infrastructure if the blockade situation worsens. He also claimed Iran wants a deal but added that Washington is “not ready yet” to enter negotiations.
Iran signaled it would defend its territorial waters and warned that pressure around the Strait of Hormuz may persist. While Tehran said the strait remains open, it cautioned that access would not be granted to “enemy” ships, even as it allowed special passage for India’s LPG tankers.
Markets are likely to closely monitor reports that the US is planning a naval coalition to escort commercial ships through the Strait of Hormuz. Attention is also on the US Federal Reserve’s policy meeting this week and the start of Nvidia’s GTC conference on Monday, both of which could influence broader market sentiment.
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