S&P500 and Nasdaq 100: Futures Set for Volatile Open After U.S. Strikes Iran

Markets Face Volatile Futures Open After U.S. Strikes on Iran Raise Energy and Defense Stakes

Traders face a high-stakes open Sunday night as futures on the S&P 500 and other major indexes react to Saturday’s U.S. strikes on Iranian nuclear facilities.

The sharp escalation in U.S.-Iran tensions is expected to drive sector-specific volatility, with energy and defense likely to lead while tech and travel may come under pressure.

Institutional analysts had warned this type of disruption would force rapid repricing across key parts of the market—and now those models are being tested in real time.

Will Crude Oil Spike Toward $90 as OPEC+ and Iran Risks Converge?

Goldman Sachs had already pegged a $10 geopolitical premium on Brent crude before the strikes, with Daan Struyven warning prices could test $90 if Iranian exports drop by 1 million barrels per day. With Iran producing 3.3 million bpd and no immediate OPEC+ spare capacity ready to fill gaps, traders may aggressively bid up crude futures at Sunday’s open.

JPMorgan’s historical analysis showed regime-change scenarios tend to spark steep oil price spikes, with past examples—like Libya 2011 and Iran 1979—sending crude up as much as 76%. The Strait of Hormuz, responsible for 20% of global oil transit, remains a focal point, even as analysts downplayed the odds of full disruption due to U.S. naval presence.

Will Energy and Defense Stocks Open Strong While Travel Lags?

Defense contractors Lockheed Martin, RTX, Northrop Grumman, and L3Harris were already flagged for upside. With analysts noting a $28 billion gain for the group during past Middle East escalations, futures could reflect renewed interest here.

Energy equities such as Chevron, Diamondback, Marathon Petroleum, and APA Corp are also expected to benefit from oil price strength. On the downside, airlines and travel names like United, Delta, JetBlue, Booking Holdings, and Airbnb may see pressure from surging jet fuel costs and weaker travel sentiment.

How Will Index Futures and Volatility Instruments React to Escalation?

S&P 500 and Nasdaq futures may open lower by 0.75%–1.25%, especially if Brent gaps higher. Morgan Stanley’s Mike Wilson categorized this type of escalation as a 5%–7% correction event, though he emphasized resilient fundamentals.

The VIX, which typically spikes to 18–25 during initial geopolitical stress, could rise sharply, with backwardation potentially creating short-term tactical entry points. Gold and Treasury futures are likely to rally in early trading, reflecting a classic defensive rotation.

Outlook: Traders Prepare for Tactical Repricing, Sector Rotation and Risk Reassessment

Unless Iran retaliates in a way that threatens critical infrastructure or the Strait of Hormuz, institutional consensus points to a contained equity impact with concentrated sector moves.

Monday’s open will offer the first real gauge of investor sentiment. Traders should monitor whether Brent crude futures approach or break above the $90 level, a threshold analysts at Goldman Sachs identified as a likely outcome if Iranian supply is disrupted.

With Fed policy steady and earnings resilient, broader market damage may stay limited—provided the conflict doesn’t escalate into direct, sustained regional confrontation.

More Information in our Economic Calendar.