US Futures Slip Amid War Uncertainty: What It Means for Investors and Businesses in Oman
NEW YORK – US stock index futures declined on Thursday following gains in the previous session, as investors remained cautious amid ongoing tensions in the Middle East and uncertainty over the potential for de-escalation.
President Donald Trump stated that Iran was eager to reach an agreement to end the conflict, a claim that contrasts with comments from Iran’s foreign minister. The minister acknowledged that Tehran was reviewing a US proposal but denied any intention to engage in talks to resolve the confrontation.
These mixed signals have left markets unsettled, with optimism for a resolution to reopen shipping through the strategically critical Strait of Hormuz still uncertain.
“The relative calm in markets suggests some investor confidence that hostilities may eventually wind down, however slim that prospect remains,” said Molly Schwartz, cross-asset macro strategist at Rabobank.
As of 04:55 ET, Dow E-minis fell 242 points, or 0.52%, S&P 500 E-minis dropped 39.5 points, or 0.59%, and Nasdaq 100 E-minis declined 177 points, or 0.73%.
Wall Street’s main indexes had ended higher on Wednesday after Washington transmitted a peace proposal to Iran via Pakistan. Meanwhile, remarks from Iranian officials indicated a tentative openness to diplomatic solutions, despite public denials of ongoing negotiations.
“Investors are trying to price out the war and price in a peace rally ahead of time, but risks remain elevated,” noted Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
The recent spike in oil prices, driven by the conflict, has reignited inflation concerns, complicating the outlook for central banks and interest rate policies.
Money markets have now dropped expectations for any US Federal Reserve rate cuts this year, after previously anticipating about two reductions before the Iran conflict escalated, according to CME Group’s FedWatch tool.
Investors are also monitoring weekly US jobless claims data and remarks from Federal Reserve governors Lisa Cook, Stephen Miran, Michael Barr, and Philip Jefferson.
In corporate news, Olaplex Holdings surged 47% in premarket trading following Germany’s Henkel agreement to acquire the hair care company for $1.4 billion.
US-listed gold mining stocks declined as gold prices fell more than 2%. Newmont lost 2.8%, Sibanye Stillwater fell 3.7%, and Harmony Gold dropped 3%.
— رويترز
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The ongoing Middle East conflict and mixed diplomatic signals create heightened geopolitical risk for businesses in Oman, especially those linked to oil and shipping through the Strait of Hormuz. Smart investors should monitor oil price volatility and inflation impacts, as these factors influence central bank policies and regional economic stability. Entrepreneurs may find opportunity in sectors less exposed to global market shocks or in businesses supporting geopolitical risk mitigation.
