Oil rises after Iran-Israel strikes, US stock futures mixed

Oil prices rose on Monday after Iran and Israel exchanged strikes, escalating tensions in the Middle East and threatening a fragile ceasefire. Meanwhile, US stock futures were mixed as investors weighed geopolitical risks alongside ongoing concerns about interest rates and the artificial intelligence trade.

Futures tied to the Dow Jones Industrial Average fell 0.3%, while S&P 500 futures gained 0.2% and Nasdaq 100 futures jumped 0.7%. The moves come after a rough week for equities, with the Nasdaq dropping 4% on Friday and the S&P 500 snapping its nine-week winning streak. A rotation out of high-flying semiconductor stocks into defensive areas accelerated following the geopolitical shock. For energy traders, the Iran-Israel conflict adds a significant risk premium to crude, as any disruption to supply from the region could tighten global markets. NowPrice's real-time fuel quotes show Brent crude trading near $78 per barrel, with WTI also climbing.

Looking ahead, traders will monitor diplomatic developments and any further military escalation. The market is also pricing in a higher probability of rate hikes after strong economic data, which could weigh on demand expectations. Key levels to watch include Brent's resistance at $80 and support near $75, as well as the upcoming EIA inventory report for signs of supply tightness.