Markets on Edge Amid Geopolitical Tensions and Market Movements

Wall Street opened on a cautious note as tensions between the U.S. and Iran simmer. Energy and defense stocks rose amid fears over the Strait of Hormuz, while Tesla made headlines with its robotaxi deployment in Texas. Key economic indicators and earnings reports are anticipated this week.

Wall Street's three main indexes were set for a tepid opening as investors remained wary of escalating tensions between the United States and Iran after recent airstrikes. The anticipation of Iran's potential retaliation has kept markets on edge.

Oil prices jumped earlier, fueled by fears of Iran shutting the crucial Strait of Hormuz, a vital oil supply passage. As a result, energy stocks surged in premarket trading. Meanwhile, defense stocks also climbed, reflecting rising geopolitical concerns.

Tesla captured the spotlight with the launch of self-driving taxis in Texas, while other major stocks like Chevron and Exxon benefited from the climbing crude prices. Meanwhile, key market-moving indicators like core PCE data and GDP figures are on investors' radar this week.

(With inputs from agencies.)