US futures slightly lower as tensions with Iran escalate

U.S. stock index futures traded slightly lower on Friday amid growing geopolitical tensions with Iran.

At 6:15 a.m. ET, Dow futures were down 38 points, implying a lower open of 29 points. Futures on the S&P and Nasdaq also traded lower.

Market focus is largely attuned to simmering geopolitical tensions between the U.S. and Iran. It comes after the New York Times reported late Thursday that President Donald Trump approved military strikes on several Iranian targets, but abruptly pulled back from launching the attacks.


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U.S. officials said Thursday that an Iranian missile had shot down an unmanned U.S. surveillance drone over the Strait of Hormuz, a shipping route through which much of the world’s oil flows. Iran claimed that the drone was above its territory.

The risk of conflict between Washington and Tehran has been rising since the Trump administration’s decision to withdraw from the 2015 Iran nuclear agreement.

Before the confrontation over the American drone, the U.S. accused Iran of recent attacks on oil tankers in the Persian Gulf region.

In oil markets, crude futures dipped following a spike in the previous session. International benchmark Brent crude was trading at around $64.22 Friday morning, down more than 0.3%, while U.S. West Texas Intermediate (WTI) stood at $56.80, down almost 0.5%.

Oil prices jumped more than 6% in the previous session, amid heightened fears of supply constraints.

On the data front, investors will be keeping a close eye on June manufacturing and services PMI at 0945 ET, as well as existing home sales for May due at 10 ET.

Meanwhile, CarMax is the only company expected to report earnings on Friday.

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