US futures slide as Trump threatens Iran amid fragile talks

S&P 500 futures and Nasdaq 100 contracts declined Sunday evening as Trump posted on Truth Social threatening to hit Iran “very hard again” over its proxies in Lebanon.yahoo
The warning came as VP JD Vance opened a new round of U.S.-Iran talks in Switzerland aimed at finalizing a deal signed June 17, with Iran claiming it reclosed the Strait of Hormuz on Saturday.aljazeera
Brent crude surpassed $81 per barrel, with JPMorgan ↘2.47% warning prices could spike far higher if sustained Hormuz disruptions materialize.bloomberg

Oil Rises and US Futures Fall as Iran Talks Fracture

US stock futures slid and crude oil prices surged on Sunday evening as President Donald Trump issued fresh military threats against Iran, casting doubt over fragile peace negotiations already strained by Tehran’s claim that it had reclosed the Strait of Hormuz.

S&P 500 futures fell 0.4% in early Asian trading, while Nasdaq 100 contracts dropped 0.6% and Dow Jones futures slipped 0.3%, according to Yahoo Finance. West Texas Intermediate crude climbed nearly 3%, approaching $78 per barrel, while Brent crude opened more than 1% higher at around $81.50 per barrel.bloomberg

Trump’s Warning Shakes Markets

The market turbulence followed Trump’s post on Truth Social warning Iran to “immediately stop their highly paid PROXIES in Lebanon from causing trouble,” adding, “If they don’t, we’ll hit Iran very hard again, just like we did last week, only harder!!!”. The threat came even as Vice President JD Vance initiated a new round of diplomatic discussions with Iranian officials in Switzerland.youtube

The talks in Switzerland had been postponed on Friday before Pakistan announced they would resume Sunday. The negotiations aim to turn a memorandum of understanding signed by Trump and Iranian President Masoud Pezeshkian on June 17 into a lasting peace agreement, with the two sides given 60 days to resolve thornier issues including Iran’s nuclear program.aljazeera

Hormuz Standoff Adds Uncertainty

Complicating matters, Iran’s military command declared on Saturday that it was reclosing the Strait of Hormuz — just days after the waterway reopened under the deal — citing Israeli strikes on Hezbollah in Lebanon as a breach of the agreement. US Central Command disputed the claim. “Iran does not control the Strait of Hormuz. Traffic continues to flow,” CENTCOM spokesman Captain Tim Hawkins told Reuters.jpost

JPMorgan has warned that Brent prices could reach $120 to $150 per barrel if sustained disruptions materialize in the strait, which handles roughly 20% of global oil trade.thestreet

What’s Next

Investors now face a week of competing signals: ongoing US-Iran diplomacy in Switzerland alongside Trump’s bellicose rhetoric and a key inflation reading Thursday with the PCE price index. The mixed messages have left markets caught between hopes for a diplomatic resolution and fears that the fragile accord could unravel entirely.yahoo