US STOCK FUTURES SLIDE AS IRAN TENSIONS SEND OIL AND BOND YIELDS HIGHER

September 28, 2026

US stock-index futures fell on Monday after President Donald Trump rejected an Iranian proposal aimed at resolving the conflict and reopening the Strait of Hormuz, reviving concerns over energy supplies and inflation.

Dow futures were down about 0.48%, while S&P 500 and Nasdaq 100 futures declined 0.45% and 0.86%, respectively, in early trading. Crude oil prices rose sharply, with Brent crude trading above $106 a barrel and US crude also advancing.

The rise in oil prices renewed fears that prolonged geopolitical tensions could intensify inflationary pressures and influence expectations for US monetary policy. Higher Treasury yields also added pressure to equity markets, particularly growth-oriented technology stocks. The 30-year US Treasury yield reached around 5.52%, close to its highest level since 2004.

Trump has said that US negotiators could continue discussions with Iran during the week despite rejecting Tehran’s proposal. Investors are also awaiting key US economic data on inflation, employment and economic growth, which could influence expectations for future Federal Reserve interest-rate decisions.