U.S. stock futures are selling off in premarket trading as traders watched rising geopolitical tensions and worried the U.S.-Iran conflict could go on longer than anticipated. The S&P 500 futures are down 1.5% while the tech-heavy Nasdaq-100 is down nearly 2% ahead of the opening bell.

The declines come after joint U.S.-Israeli military strikes killed Supreme Leader Ayatollah Ali Khamenei this past weekend. President Donald Trump has also warned that the conflict could continue for more than four weeks. Crude oil is spiking to over 8-month highs above $76 a barrel. 

An Iranian Revolutionary Guard commander said the Strait of Hormuz, the world’s most vital transit route for crude oil, is closed and that Iran would set ablaze ships attempting the route, Reuters reported, citing Iranian media. On the corporate front, positive earnings from Target (TGT) have the stock up 3% in premarket trading.

• Oil (/CL) – Oil prices are up 7% near $76 a barrel as the widening U.S.-Israeli conflict with Iran and threats to shipping through the Strait of Hormuz heightened fears of supply disruptions from the key Middle East producing region. The concerns about transiting the waterway are increasing as Iranian media reported on Monday an Iranian Revolutionary Guards senior official saying the Strait of Hormuz is closed and Iran will fire on any ship trying to pass.

• Gold (/GC) – Gold prices are down 2% near $5200 and is snapping a 4-session win streak, as investors sought safe-haven assets amid an escalating U.S. and Israeli air war against Iran, raising fears the conflict could spiral into a protracted regional war and deepen uncertainty.

• Bitcoin (/BTC) – The Crypto Future is down over 2% near 67,800 in premarket trading.

• VIX – The CBOE Volatility Index was up nearly 8% on Monday and settled at 21.44 as stocks bounced off of session lows to finish relatively flat. The VIX is rising this morning above the 25 level as stocks fall, which is over 3-month highs.

• U.S. Dollar (/DX) – The dollar is up almost 0.78% to 99.14.

• Arete upgrades Palo Alto Networks (PANW) to Buy from Sell

• HSBC upgrades Block (XYZ) to Buy from Hold

• BofA upgrades Unity (U) to Neutral from Underperform

• Baird downgrades MongoDB (MDB) to Neutral from Outperform

• Barclays downgrades Mosaic (MOS) to Equal Weight from Overweight

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