U.S. equity futures moved lower early Tuesday as investors weighed rising geopolitical risks linked to Iran and potential disruptions to global energy supply. Oil prices climbed after fresh security incidents near the Strait of Hormuz, while gold edged higher ahead of a crucial Federal Reserve policy decision later this week. Meanwhile, the Reserve Bank of Australia raised interest rates, and Nvidia (NASDAQ:NVDA) CEO Jensen Huang predicted enormous future demand for artificial intelligence chips.
Futures edge lower
U.S. stock futures declined in early trading as markets monitored crude prices, which have remained above the $100-per-barrel mark amid the continuing conflict involving Iran.
At 04:24 ET, Dow Jones futures were down 163 points, or 0.4%. S&P 500 futures fell 28 points, also 0.4%, while Nasdaq 100 futures dropped 124 points, or 0.5%.
Wall Street’s main indices had finished the previous session higher, supported by hopes that a coalition of countries might assist the United States in reopening the Strait of Hormuz—a critical maritime route south of Iran that carries about one-fifth of the world’s oil shipments.
While the United Kingdom and France said they would consider discussions with Washington, several other U.S. partners—including Germany and Japan—declined President Donald Trump’s request for assistance in reopening the strategic shipping lane.
Trump previously suggested the United States might not require outside help to restore tanker traffic through the strait, though he noted that “numerous countries” had told him that “they’re on the way” to offering support.
Oil prices gain
Crude prices rose in early European trading Tuesday, highlighting ongoing concerns that maritime disruptions in the Strait of Hormuz could persist.
Several container shipping companies have largely halted voyages through the narrow passage, citing safety concerns for crews and challenges securing insurance coverage. Iran has also warned that it will block vessels carrying goods that could benefit the United States or its allies.
According to a report from the New York Times, a projectile struck a tanker anchored near a port in the United Arab Emirates early Tuesday. Citing the United Kingdom Maritime Trade Operations Center, the newspaper said the vessel, located near the port of Fujairah at the southern entrance of the strait, suffered only limited damage.
Authorities in the UAE also reported that a drone had caused a fire at a major oil facility.
In a separate development, Trump said he had requested that a planned meeting with Chinese President Xi Jinping next month be postponed. The U.S. president had previously warned the summit could be delayed if China did not use its influence to help reopen the strait. Iran, which exports oil to China, has continued allowing Chinese vessels to pass safely through the passage.
Gold edges up
Gold prices climbed in Asian trading as investors focused on oil market developments, the ongoing U.S.-Israel conflict involving Iran and several key central bank meetings scheduled for this week.
The precious metal briefly slipped below $5,000 per ounce in the previous session. Increased demand for safe-haven assets has been offset by concerns that the conflict could intensify inflationary pressures, while a stronger U.S. dollar has also tempered gains.
Gold has largely traded within a $5,000 to $5,200 per ounce range over the past three weeks.
Market attention is now shifting to a series of central bank policy decisions this week, particularly the Federal Reserve’s meeting on Wednesday. The Fed is widely expected to keep interest rates unchanged as policymakers assess the potential inflation impact of the Iran conflict.
The Bank of Canada will also meet on Wednesday, while the Bank of Japan, Swiss National Bank, Bank of England and European Central Bank are scheduled to announce interest rate decisions on Thursday.
RBA raises interest rates
The Reserve Bank of Australia raised its benchmark interest rate by 25 basis points on Tuesday, as expected, responding to a resurgence in inflation toward the end of 2025 and potential energy price shocks linked to Middle East tensions.
The central bank lifted its policy rate to 4.1%, marking its second rate increase this year after a similar move in February.
However, the decision revealed divisions among policymakers, with four of the nine members of the rate-setting board voting to keep rates unchanged.
Speaking at a press conference following the announcement, RBA Governor Michele Bullock said all board members agreed that tighter policy was needed, but differed over the timing—a comment markets interpreted as hawkish.
“Developments in the Middle East remain highly uncertain, but under a wide range of possible scenarios could add to global and domestic inflation,” the RBA said in a statement.
Nvidia CEO forecasts $1 trillion in AI chip sales
“This is the AI future. This is where AI wants to go.”
Nvidia CEO Jensen Huang offered an upbeat vision for artificial intelligence during a widely watched keynote at a developer conference in California on Tuesday.
Huang highlighted the rapid expansion of AI inference computing, which allows AI models to generate faster and more efficient responses to user queries. According to Huang, the technology has reached an “inflection” point, adding “[t]his is the secret sauce.”
During the presentation, Huang introduced new server systems that combine Nvidia’s latest Vera Rubin architecture with a next-generation chip developed by Groq, a startup focused on AI inference whose leadership Nvidia secured through a $20 billion licensing agreement last year.
The new platform is expected to deliver computing performance 350 times faster than Nvidia’s earlier Hopper graphics processing units.
Against this backdrop, Huang projected that Nvidia could generate $1 trillion in AI chip sales by the end of 2027, compared with roughly $500 billion expected for the current year.
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