Market Jitters: Middle East Tensions Shake U.S. Stocks

U.S. stock index futures experienced a significant drop on Friday following Israel's military aggression towards Iran, heightening tensions in an already unstable Middle East. This geopolitical conflict, centered around Iran's nuclear ambitions, negatively impacted global market sentiment.

Israel aimed to cripple Tehran's potential atomic capabilities amid deadlocked nuclear discussions between Iran and the U.S. In retaliation, Iran launched a drone offensive. The escalating tensions in this oil-centric region resulted in a more than 6% increase in oil prices, subsequently causing a rise in energy stocks, with Chevron and Exxon showing notable premarket gains.

Ahead of the Federal Reserve's upcoming meeting, investor focus shifted as stock futures, including those of Dow, S&P 500, and Nasdaq, all showed declines. Alongside, soaring crude costs affected airline stocks adversely, whereas defense stocks witnessed an uptick, highlighted by significant gains in Lockheed Martin and RTX Corporation.

(With inputs from agencies.)