U.S. stock futures mostly ticked higher on Monday, as President Donald Trump announced a new initiative called "Project Freedom" to help ships from neutral countries that are stranded in the Strait of Hormuz. The idea is to guide them out of restricted waters, where they've been stuck due to Iran's blockade and are running low on food and water.
S&P 500 futures gained 12.25 points, or 0.17%, to 7,270.25, and Nasdaq 100 futures advanced 100.25 points, or 0.36%, to 27,936.00 as of 2:11 a.m. EST. Futures tied to the Dow Jones Industrial Average eased 16 points, or 0.032%, to 49,630.00.
Iran Warns on Trump's Announcement
Trump said on Sunday that the U.S. would begin a humanitarian operation to assist vessels from neutral countries that are stuck due to Iran's blockade. "We have told these Countries that we will guide their Ships safely out of these restricted Waterways, so that they can freely and ably get on with their business," Trump wrote on Truth Social. He warned that any interference would be met with a forceful response.
Details of the operation remain unclear, including who it will assist and how it will work. Meanwhile, ships and crews have been stranded in the Persian Gulf since the war began, witnessing intercepted attacks overhead as their supplies run low.
Iran's state-run IRNA dismissed Trump's announcement as "delirium," while Ebrahim Azizi, head of Iran's parliamentary National Security Commission, warned in a post on X that any U.S. interference in the Strait of Hormuz would violate the ceasefire.
Traders Eye OPEC+ Output Hike, Oil Risks
Traders are also likely to evaluate OPEC+'s decision to raise oil output by 188,000 barrels per day, announced at its first meeting following the exit of key member the United Arab Emirates (UAE).
Gaurav Ganguly, head of international economics at Moody's Analytics, warned on CNBC Squawk Box Asia on Monday that a prolonged Middle East conflict keeping oil prices high could tip the global economy into recession. He estimated that sustained Brent crude prices around $125 per barrel would likely trigger a downturn.
In commodities, WTI crude oil slipped 0.93% to $100.99 per barrel. Brent crude edged down 0.78% to $107.34 per barrel. RBOB gasoline futures fell 0.73% to $3.5667 per gallon, while natural gas futures traded 2.23% higher at $2.840 per MMBtu. ULSD heating oil declined 1.08% to $3.9037 per gallon.
Meanwhile, the U.S. dollar index stood at 97.957, down 0.05%.
Asian markets were higher, with Japan's Nikkei 225 rising 0.38% to 59,513.12, while South Korea's KOSPI gained 4.83% to 6,917.67.
