US Stock Market Stays Stable Amid Ongoing Tensions Between US and Iran

US Stock Futures Trade Flat Amid Ongoing Middle East Tensions

Market Overview

On Thursday, 26 March, US stock futures traded largely flat, with the Dow Jones Industrial Average, S&P 500, and Nasdaq futures experiencing minimal movement, ranging between 0.1% and 0.2%. This trend follows the close of Wednesday's session, where all three major averages rose after reports of a US proposal to Iran.

Regional Tensions

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The ongoing conflict in the Middle East continues to dominate investor sentiment. The US and Iran have engaged in a war of words, with conflicting statements from both parties regarding the progress of efforts to end the conflict. The US has reportedly delivered a 15-point proposal to Iran, which includes a halt to the killing of Iranian officials, assurances against future attacks, reparations for the war, an end to hostilities, and recognition of Iran's sovereignty over the Strait of Hormuz.

Iran's Response

Iran has issued its own plan, via state television, which includes a halt to the killing of its officials, assurances against future attacks, reparations for the war, an end to hostilities, and recognition of Iran's sovereignty over the Strait of Hormuz. Iranian Foreign Minister Araghchi stated that the country's top authorities are reviewing the US proposal but reiterated that Tehran has no intention of holding direct talks with Washington.

Crude Oil Prices

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Crude oil prices have regained strength, with Brent crude futures rising 4% to $101.29 per barrel and US benchmark crude jumping 4.13% to an intraday high of $94 per barrel. This increase follows a brief pause in oil prices, which have remained highly volatile due to the shutdown of the Strait of Hormuz. The Strait is a critical waterway, through which approximately 20% of the world's oil supply passes.

Economic Data

Investors will focus on weekly jobless claims data and comments from Federal Reserve officials Lisa Cook, Stephen Miran, Michael Barr, and Philip Jefferson.