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U.S. equity futures advanced on Thursday as markets monitored developments in the conflict between the U.S. and Iran, higher oil prices and upcoming inflation data. Oracle (NYSE:ORCL) and Adobe (NASDAQ:ADBE) are also scheduled to report results after the closing bell.

At 03:02 ET (07:02 GMT), Dow futures gained 213 points, or 0.4%, while S&P 500 futures rose 18 points, or 0.2%. Nasdaq 100 futures were up 15 points, or 0.1%.

The gains followed declines for Wall Street’s main indices in the previous session as further military exchanges between the U.S. and Iran increased uncertainty surrounding the Strait of Hormuz.

Brent crude moved above $100 per barrel for the first time since July. Markets are also awaiting U.S. producer and consumer inflation figures scheduled for release this week.

U.S. Treasury yields increased, with the benchmark 10-year yield reaching 4.84%, its highest level since 2023. The move followed the increase in oil prices and news that the U.S. Treasury would repurchase fewer government bonds in its latest operation than some analysts had anticipated.

The S&P 500 recorded its third consecutive daily decline on Wednesday.

“So even though we’re just over a week into September, it’s already living up to its reputation as one of the toughest months of the year for markets,” Deutsche Bank analysts said in a note.

Apple (NASDAQ:AAPL) shares closed lower after the company introduced a foldable version of its iPhone priced at $1,999.

Trump Comments on Timing of Iran Conflict

U.S. President Donald Trump told supporters on Wednesday that he expects the conflict with Iran to end after the November midterm elections.

The comments came after recent exchanges of air strikes between the U.S. and Iran. The supplied information cited polling suggesting the conflict has affected Trump’s approval ratings and could influence Republican results in the midterm elections. Gasoline prices have also risen since the fighting began in late February.

Trump accused Tehran of attempting to influence the election.

An interim ceasefire agreement reached in June did not last, while Trump has previously set other deadlines for ending the conflict.

The Wall Street Journal reported that senior advisers have told Trump the conflict could continue through the remainder of his presidency, which is scheduled to end in January 2029.

Oracle Set to Report as AI Spending Remains in Focus

Oracle is due to publish its latest results after Thursday’s closing bell.

The company has previously outlined plans for increased spending and debt financing as it develops additional artificial intelligence infrastructure.

Oracle has entered into agreements with companies including Meta Platforms and OpenAI as part of its cloud and AI operations.

In June, Oracle said it expected to raise around $40 billion through debt and equity financing next year, compared with a previous $20 billion at-the-market equity issuance.

The company forecast fiscal 2027 capital expenditure of $95 billion. That compared with an analyst consensus estimate of $67.66 billion, according to LSEG data cited by Reuters.

Adobe Earnings Due After Closing Bell

Adobe is also scheduled to report results after U.S. markets close on Thursday.

The report will be the company’s first since the departure of Chief Financial Officer Dan Durn was announced in June. Chief Executive Shantanu Narayen also stepped down earlier in the year.

Adobe previously increased its annual revenue and profit forecasts. Its AI-related annual recurring revenue exceeded $500 million at the end of the second quarter.

The company continues to develop AI-related products while competing with design software providers including Figma and Canva.

ECB Expected to Raise Interest Rates

The European Central Bank is widely expected to increase interest rates following its latest policy meeting.

The decision comes against a backdrop of higher energy prices associated with the Middle East conflict. European natural gas prices have reached their highest levels since 2023.

According to the supplied information, markets had fully priced in a 25-basis-point rate increase.

ING analysts described the expected move as an “insurance hike,” designed to “strengthen its credibility and to preempt any possible indirect or even second-round effects from the current energy price shock.”

FTSE 100 opens flat ahead of the ECB decision as Currys reports 7% sales growth, Fevertree posts higher revenue and Brent remains in focus.

Market Overview

The FTSE 100 opened broadly unchanged at 10,669.90 as investors awaited the European Central Bank’s interest-rate decision, with elevated oil prices and continued US-Iran tensions keeping the wider backdrop cautious. The Euronext 100 was also broadly unchanged at 1,896.63, while Germany’s DAX gained 0.11 per cent to 25,603.96. In the US, the Nasdaq closed lower at 26,253.34 and the S&P 500 fell to 7,636.36.

Commodity markets were mixed, with copper, gold and Brent crude moving lower while natural gas rose. Brent remained in focus as attacks on shipping and continued disruption around the Strait of Hormuz sustained concerns over global energy supplies. Against sterling, the US dollar and euro weakened marginally, while the Swiss franc, Japanese yen and Australian dollar strengthened slightly. Bitcoin was down. Markets are also focused on the ECB’s policy guidance and upcoming US inflation data.

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Market Numbers

FTSE 100: Down (-0.001%), 10,669.90
Euronext 100: Down (-0.001%), 1,896.63
DAX: Up (+0.11%), 25,603.96
NASDAQ: Down, 26,253.34
S&P 500: Down, 7,636.36

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In the Headlines

Sales growth – Currys (LSE:CURY)
The consumer technology retailer reported a 7% increase in group like-for-like revenue for the first 17 weeks, with UK & Ireland revenue up 6% and the Nordics up 9%. Currys maintained its full-year guidance and said year-end net cash is expected to remain well above its £100 million target.

Revenue and EBITDA growth – Fevertree Drinks (LSE:FEVR)
The drinks group reported an 8% constant-currency increase in first-half Fever-Tree brand revenue to £183.6 million, while adjusted EBITDA rose 9% to £20.1 million. Fevertree maintained its full-year guidance and announced a new £60 million share buyback programme.

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Currencies (vs GBP)

USD: Down (-0.01%), $1.355
CHF: Up (+0.00%), Fr.1.0975
EUR: Down (-0.00%), €1.1647
JPY: Up (+0.03%), ¥208.058
AUD: Up (+0.01%), $1.8762
Bitcoin (BTC/GBP): Down, £57,532.33

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Commodities

Copper: Down
Gold: Down
Brent Crude: Down
Natural Gas: Up

The FTSE 100 edged higher on Thursday as investors awaited the European Central Bank’s interest-rate decision while monitoring developments in the U.S.-Iran conflict and oil markets.

The FTSE 100 was up 0.06% at 03:18 ET (07:18 GMT). Elsewhere in Europe, Germany’s DAX gained 0.12% and France’s CAC 40 rose 0.30%.

Sterling traded at $1.3554 against the U.S. dollar, up 0.07% on the day.

Markets were awaiting the ECB’s policy announcement, with a 25-basis-point increase across all three benchmark interest rates priced in as near-certain.

Strait of Hormuz Traffic Remains Below Recent Average

Iranian state media reported that projectiles struck several locations along Iran’s southern coastline in Sirik early Thursday, with explosions also reported across Minab County and Qeshm Island.

Vessel transits through the Strait of Hormuz declined to seven on Wednesday from 12 a day earlier, according to preliminary ship-tracking data cited by Reuters. The figure was below the 10-day average of 14 vessels.

Some ships were operating with their transponders switched off, meaning the data may not capture all vessel movements.

CBS News reported that multiple U.S. military aircraft were damaged by Iranian ballistic missile strikes on the Al Azraq airbase in Jordan early Wednesday, citing sources with direct knowledge of the matter.

According to the report, around eight F-15 aircraft sustained light damage and subsequently returned to service, while an A-10 Thunderbolt lost a wing. U.S. forces fired more than 30 Patriot missiles in response, CBS News reported.

Iran’s Islamic Revolutionary Guard Corps said the attacks were retaliation for U.S. strikes on five Iranian oil tankers on Tuesday.

Speaking at the Republican midterm convention in Dallas on Wednesday, U.S. President Donald Trump said Washington was “winning” the conflict and predicted that oil prices would decline after the war ended following November’s elections. He also left open the possibility of negotiations.

ING analysts said current signals “point to further escalation, keeping upside pressure firmly in place,” adding that significant disruption to Strait of Hormuz flows could tighten the oil market “more sharply” than developments in recent weeks had indicated.

ING also cited increased Chinese activity in the physical oil market, particularly in the North Sea, while noting that Chinese crude imports remain below year-earlier levels. The analysts said Beijing’s purchasing behaviour would be “crucial to the outlook.”

Brent Crude Trades Above $100 a Barrel

Brent crude futures for November delivery declined 0.37% to $100.89 a barrel, while October U.S. West Texas Intermediate futures fell 0.23% to $95.83.

December gold futures were down 0.08% at $4,456.97 an ounce, while spot gold gained 0.26% to $4,413.22.

In UK foreign policy developments, Foreign Secretary Ed Miliband described Israel’s decision to close London’s consulate in Jerusalem as “regrettable and damaging.”

UN special rapporteur Francesca Albanese described a UK-led ban on imports from illegal Israeli settlements as “potentially seismic,” while saying it should also cover East Jerusalem and Gaza.

UK Corporate Updates

Associated British Foods (LSE:ABF) said Primark plans to introduce home delivery in the UK, while like-for-like sales are expected to decline 3% in the fourth quarter to 12 September.

Currys (LSE:CURY) reported 7% like-for-like sales growth in the first quarter, citing demand for cooling products during the summer heatwave and growth in its Nordic operations.

THG (LSE:THG) reported that first-half adjusted EBITDA more than doubled to £42.8 million. The company said EU parcel duties are expected to limit third-quarter revenue growth to approximately 2%.

Wall Street was on course to open lower on Wednesday as another rise in crude oil prices added to concerns over inflation and the outlook for U.S. interest rates.

Brent crude climbed through $100 a barrel for the first time since July, while U.S. crude futures gained around 3% following further military exchanges involving the U.S. and Iran.

U.S. forces destroyed five Iranian crude carriers after Iran’s Islamic Revolutionary Guard Corps targeted a U.S. Navy warship with ballistic missiles.

U.S. Central Command said the tankers formed part of a multibillion-dollar network used to finance the IRGC and regional groups aligned with Tehran.

Iran subsequently launched missiles targeting U.S. military positions in Jordan, adding to concerns about the possibility of a broader regional conflict.

Oil rally raises questions over Fed policy

The latest increase in energy prices has brought inflation risks back into focus ahead of the Federal Reserve’s monetary policy meeting next week.

“Brent crude pushing above $100 a barrel has had a psychological effect on the market, pushing a hypothetical inflation worry gauge to ‘serious’ status and dragging down financial assets,” said Dan Coatsworth, head of markets at AJ Bell.

“The oil price has now jumped by 28% since early August,” Coatsworth added. “This type of ascent could leave businesses and consumers feeling sick at the thought of sharp cost increases and potentially higher borrowing costs if central banks choose to fight inflation with interest rate hikes.”

Attention will also turn to U.S. consumer and producer inflation figures due later this week. The data could shape expectations for the Fed’s next interest rate decision.

U.S. indices extend losses after Labor Day break

The expected weaker open follows declines across Wall Street on Tuesday, when markets returned from the Labor Day weekend.

The Dow Jones Industrial Average recorded the largest decline among the major indices, dropping 628.18 points, or 1.2%, to 52,786.07.

The S&P 500 fell 45.08 points, or 0.6%, to 7,673.52, while the Nasdaq Composite finished 85.58 points, or 0.3%, lower at 26,421.41.

Tuesday’s declines also coincided with higher oil prices after U.S. forces struck three Iranian crude carriers over the weekend following Iranian missile launches towards two U.S. Navy vessels.

Iran has threatened further retaliation if the U.S. attacks additional Iranian assets, while Saudi-led coalition forces have said they will respond to attacks by Houthi forces.

Separately, Tehran said an agreement with Oman over the management of shipping through the Strait of Hormuz could be announced shortly.

Pharmaceuticals and housing stocks decline

Amgen (NASDAQ:AMGN) was among the largest individual decliners on Tuesday, falling more than 10% after Novartis (NYSE:NVS) released late-stage trial results for a competing cholesterol treatment.

Weakness spread across the pharmaceutical sector, sending the NYSE Arca Pharmaceutical Index down 3.2%.

Housing shares also came under pressure as Treasury yields increased. The Philadelphia Housing Sector Index declined 2.8%.

Healthcare, biotechnology and airline stocks recorded further losses, while oil, semiconductor and networking shares were among the areas of the market that moved higher.