US equity markets are poised to open lower on Monday as investors digest a sharp escalation in tensions between the United States and Iran.
Reports indicate that both nations engaged in military attacks over the weekend, marking a significant deterioration in the geopolitical landscape of the Middle East.
The renewed hostilities have reignited fears regarding supply chain disruptions and broader regional instability.
Market participants are increasingly concerned that the conflict could spill over into critical shipping lanes, potentially impacting energy flows and freight costs.
This risk premium is evident in the softening of global equity futures ahead of the US open.
The sell-off follows a period of volatility in US equities, where technology stocks have already faced broad-based selling pressure.