U.S. stock futures edged higher Monday, showing resilience amid escalating tensions between Israel and Iran and ongoing economic uncertainty. Meanwhile, oil prices climbed again following a series of weekend attacks, as the Middle East conflict takes center stage ahead of this week’s Group of Seven (G7) summit in Canada. In other news, activist investor Barington Capital Group plans to push for major changes at Victoria’s Secret, aiming to shake up the lingerie brand’s board.
Futures Show Gains
Investors were cautiously optimistic early Monday, digesting the recent flare-up in the Middle East and awaiting the Federal Reserve’s interest rate decision scheduled for later this week. By 3:36 a.m. ET, Dow futures were up 181 points (0.4%), S&P 500 futures had gained 29 points (0.5%), and Nasdaq 100 futures rose 113 points (0.5%).
Last Friday, Wall Street closed lower after a wave of airstrikes between Israel and Iran raised geopolitical risks and dampened market confidence. Defense stocks rallied in response, while energy shares benefited from soaring oil prices. Airline stocks, however, fell as higher fuel costs loomed.
Investors found some relief from recent inflation data and steady weekly jobless claims, which lessened concerns about the economic impact of U.S. tariffs. Attention now turns to the Federal Reserve’s Wednesday announcement, with expectations leaning toward maintaining current interest rates and adopting a cautious stance on future hikes.
Renewed Iran-Israel Hostilities Drive Oil Higher
Oil prices extended gains Monday amid continuing conflict in the Middle East. Brent crude futures rose 0.4% to $74.53 per barrel, while U.S. West Texas Intermediate crude climbed 0.5% to $71.64 per barrel, after earlier surges of more than $4.
Over the weekend, Israel and Iran exchanged attacks that resulted in civilian casualties and raised fears of a broader regional war. Reports indicate Iran has refused to enter U.S.-mediated ceasefire talks while Israeli strikes continue. Meanwhile, Israel warned Iranians near nuclear sites to evacuate, targeting missile facilities in ongoing military operations.
G7 Leaders to Address Middle East Crisis
The escalating conflict is expected to dominate discussions at the G7 summit this week in Canada. Leaders are reportedly preparing a joint statement calling for de-escalation. German Chancellor Friedrich Merz emphasized balancing Iran’s nuclear ambitions with Israel’s right to self-defense while keeping diplomatic options open.
At the same time, officials are cautious to avoid clashes with U.S. President Donald Trump amid ongoing negotiations around his administration’s controversial tariffs. Canadian Prime Minister Mark Carney stressed the summit’s focus on peace and security but hinted Ottawa could retaliate if the U.S. maintains tariffs on steel and aluminum.
Victoria’s Secret Faces Boardroom Challenge
Activist investor Barington Capital Group is reportedly gearing up to challenge Victoria’s Secret’s (NYSE:VSCO)board of directors and seek to dismantle its shareholder rights “poison pill” plan, according to Reuters. Holding over a 1% stake, Barington views the lingerie brand as underperforming since its 2021 spin-off from L Brands (NYSE:BBWI), with shares down roughly 55% this year.
The investor aims to replace much of Victoria’s Secret’s leadership to boost shareholder value and counter recent weak demand trends.
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