U.S. Stock Index Futures Slide After Oil Jumps on Drone Attack




 

(Bloomberg) -- U.S. stock index futures dropped as global oil prices surged the most on record after a drone strike on a Saudi Arabian oil facility increased geopolitical risk concern.

S&P 500 Index futures expiring in December dropped as much as 0.8% as of 9:25 a.m. in Singapore. Contracts slumped 1.4% on the Nasdaq 100 and declined 0.8% on the Dow Jones Industrial Average. Brent crude soared as much as 19.5% and West Texas Intermediate added 15.5% after the news of the attack on the world's largest crude exporter.

The Saudi Arabia attacks will likely hurt Asian stock markets today with the S&P e-mini futures already lower, Jeffrey Halley, a market analyst at Oanda Asia Pacific Pte, wrote in an email. "This story will continue to reverberate this week even after the knee-jerk panic in oil markets this morning."

President Donald Trump said the U.S. is "locked and loaded depending on verification" that Iran staged the attack on major Saudi Arabian oil facilities. Several administration officials said Sunday that they had substantial evidence that Iran was behind the attack, not the Houthi rebels in Yemen who claimed responsibility.

To contact the reporter on this story: Abhishek Vishnoi in Singapore at avishnoi4@bloomberg.net

To contact the editors responsible for this story: Lianting Tu at ltu4@bloomberg.net, Tom Redmond

For more articles like this, please visit us at bloomberg.com

©2019 Bloomberg L.P.

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