Markets on Edge: Stocks Tumble Amid Middle East Tensions

U.S. stock futures fell amid heightened geopolitical tensions due to Tehran's vow of retaliation for U.S. airstrikes. Oil prices surged, leading to increased concerns about inflation. Defense stocks rose while Tesla launched robotaxis in Texas. Estée Lauder shares climbed after an upgrade from Deutsche Bank.

U.S. stock futures experienced a downturn on Monday following Tehran's pledge to retaliate against American airstrikes, which has escalated fears of a broader conflict in the Middle East. These tensions have reverberated through the markets, adding pressure to economic indicators worldwide.

In the oil sector, prices surged amid volatile trading sessions, reflecting concerns over the potential closure of the Strait of Hormuz by Iran. Brent futures saw a 1.2% increase, reaching $77.91 per barrel early in the morning, which in turn buoyed energy stocks into the premarket.

Defense stocks also saw gains, indicating investor interest in sectors less susceptible to market turbulence. Meanwhile, the Federal Reserve's Chair, alongside other key figures, prepared to address Congress on rising inflation risks and market volatility, spotlighting a dynamic economic landscape.

(With inputs from agencies.)