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US stock futures were largely unchanged on Tuesday as investors assessed comments from President Donald Trump seem to suggest the conflict involving Iran could end soon, easing concerns over prolonged disruption to global energy supplies.
The remarks triggered a sharp decline in oil prices and raised hopes that the economic fallout from the conflict may remain limited.
Futures linked to the Dow Jones Industrial Average hovered around the flatline after a volatile session on Wall Street that ended with gains. Contracts tied to the S&P 500 and the Nasdaq-100 were also little changed in early trade after briefly posting modest premarket advances.
Oil prices, which had surged in recent sessions, dropped sharply after Trump said military objectives in Iran were progressing faster than expected and that the conflict could end “very soon.”
West Texas Intermediate crude futures fell about 6% to around $88 per barrel, while Brent Crude declined roughly 7% to near $91 a barrel.
Meanwhile, Paul Gooden, head of global natural resources at Ninety One, told CNBC that oil prices could surge above $120 per barrel if disruptions to the market persist. However, he noted that sustained price spikes typically lead to “demand destruction,” as consumers and businesses cut back on travel and shift toward alternative energy sources.
