Market Turmoil as Middle East Conflict Shakes Global Stocks

U.S. stock index futures saw a significant drop of over 1% on Monday, driven by growing fears that the Middle East conflict could severely disrupt global trade and spark further inflationary pressures.

Premarket trading indicated a strong hit to airlines after several carriers ceased operations, and oil and gas facilities in the Middle East paused production, causing crude prices to jump 8%. This situation has cast a shadow over the global economy and exerted pressure on financial stocks.

Defense stocks received a notable boost as geopolitical tensions intensified following U.S. and Israeli strikes on Iran, killing Supreme Leader Tehran. Lockheed Martin and RTX registered over 6% gains, while Kratos and AeroVironment rose sharply as investors reacted to potential escalation across the region.