Oil Surge from US-Iran Tensions Sends Dow and Nasdaq Futures Lower

Crude oil pushed above $90 a barrel on September 1, 2026, as renewed U.S.-Iran military tensions in the Strait of Hormuz revived fears of a supply disruption, lifting energy stocks even as broader equity futures turned lower. The move followed a tanker being struck by projectiles in the Strait on Monday night and U.S. threats of additional strikes on Iran, a corridor that carries roughly a fifth of the world's oil shipments.

Dow, S&P 500 and Nasdaq futures slipped in premarket trading as the oil jump combined with a fresh leg up in Treasury yields, with the 10-year yield climbing toward its highest level since January 2025. Energy names outperformed the broader tape: XOM and CVX each rose more than 1%, and the Energy Select Sector SPDR ETF (XLE) gained roughly 2%. Within energy, the response was uneven rather than a uniform rally: producers repriced quickly on higher near-term revenue per barrel, while oil-services shares lagged as investors held off on assuming drilling activity would accelerate overnight.

Tech names were softer on the day. SentiSense data shows NVDA trading down about 1% near $218 and MU down modestly near $955, both still carrying a bullish SentiSense Score and positive sentiment reading heading into the session, a reminder that a single risk-off day has not reversed the underlying trend in either name. The rate move is the more direct pressure point for growth stocks: the same yield climb weighing on the broad market makes future earnings from richly valued tech names worth relatively less today.

Higher oil also keeps inflation risk in the conversation. Gasoline prices have stayed above $4 a gallon through August, and inflation has remained above the Fed's 3% comfort zone, a combination that could complicate the central bank's rate path if crude stays elevated. Investors are likely to watch for any sign of de-escalation between the U.S. and Iran; a cooling of the conflict could unwind both the oil spike and the yield pressure quickly, while further escalation could deepen the pullback in equities, particularly in the tech sector most sensitive to higher discount rates.

Related Stocks

• NVDA
• MU