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Wall Street futures drop as Middle East tensions lift oil above $100
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Wall Street futures drop as Middle East tensions lift oil above $100
Mar 12, 2026 1:34 AM

March 12 (Reuters) - U.S. stock index futures slid on Thursday as oil prices soared back above $100 a barrel, fanning inflation worries and forcing traders to dial back expectations of U.S. interest rate cuts.

Crude prices jumped following reports that two tankers were set ablaze in Iraqi waters after apparent Iranian strikes, part of a broader wave of attacks on oil and transport facilities across the Middle East. Iran warned oil prices could surge as high as $200 a barrel.

Goldman Sachs has pushed back its forecast for the Federal Reserve's next rate cut to September, from an earlier expectation of June. Money market futures show traders now fully price in only one quarter-point cut by December, down from two cuts expected before the conflict.

Global markets have been roiled this month as the U.S. and Israel's war with Iran disrupted oil supplies and sent crude prices sharply higher, complicating global central banks' plans to ease monetary policy.

Additionally, Washington said it was launching two new trade investigations into excess industrial capacity in 16 major trading partners and into forced labor, in a long-telegraphed move, to rebuild tariff pressure after the U.S. Supreme Court tore down much of U.S. President Donald Trump's tariff program last month. 

At 3:35 a.m., S&P 500 E-minis were down 47.5 points, or 0.7%, Dow E-minis were down 387 points, or 0.82%, and Nasdaq 100 E-minis were down 171.25 points, or 0.69%.

Following a string of credit issues surfaced in recent months, investors are scrutinizing the roughly $2 trillion private credit market, raising concerns over loan performance and borrowers' ability to manage elevated interest rates.

Glendon Capital Management said private credit lenders such as Blue Owl are obscuring weaknesses in their portfolios, according to a Financial Times report.

Morgan Stanley limited redemptions at one of its private credit funds on Wednesday, and JPMorgan Chase reduced the value of some loans to private credit funds.

Shares of Bumble are likely to be in focus on Thursday after the dating app operator reported fourth-quarter revenue above estimates. The company's shares rose about 20% in after-hours trading on Wednesday. 

Later in the day, investors will gauge jobless claims and comments from Fed Vice Chair for Supervision Michelle Bowman.

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