U.S. stock futures pointed lower on Tuesday as investors weighed geopolitical tensions around Iran and disruptions to global energy supply. Oil prices climbed following fresh security incidents near the Strait of Hormuz, while gold edged higher ahead of a key Federal Reserve meeting later this week. Meanwhile, the Reserve Bank of Australia increased interest rates amid inflation concerns, and Nvidia (NASDAQ:NVDA) CEO Jensen Huang projected massive future demand for AI chips.
Futures move lower
U.S. equity futures declined in early trading as markets monitored crude prices, which have remained above $100 per barrel amid the ongoing conflict involving Iran.
By 04:24 ET, Dow Jones futures were down 163 points, or 0.4%. S&P 500 futures dropped 28 points, also 0.4%, while Nasdaq 100 futures slipped 124 points, or 0.5%.
Wall Street ended the previous session higher, supported by expectations that international partners might assist U.S. efforts to reopen the Strait of Hormuz, a crucial shipping corridor south of Iran through which roughly one-fifth of global oil flows.
Although the United Kingdom and France signaled they were open to discussions with Washington, several U.S. allies—including Germany and Japan—rejected President Donald Trump’s request for support in reopening the strategic waterway.
Trump had earlier indicated that the United States might not require outside help to restore tanker traffic, though he said “numerous countries” had told him that “they’re on the way” to providing help.
Oil prices advance
Oil prices moved higher in early European trading on Tuesday, reinforcing concerns that shipping disruptions in the Strait of Hormuz could persist.
Many container shipping companies have largely suspended voyages through the passage as they prioritize crew safety and struggle to secure insurance coverage. Iran has also warned that it would prevent ships carrying goods that could benefit the United States or its allies from passing through the strait.
According to a report by 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 report said the vessel, located near the port of Fujairah at the southern entrance of the strait, sustained only minor damage.
Authorities in the UAE also reported that a drone was responsible for a fire at a key oil facility.
Separately, Trump said he had asked for a planned meeting with Chinese President Xi Jinping next month to be postponed. The U.S. president had previously warned that 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 through the waterway.
Gold edges higher
Gold prices rose in Asian trading as investors focused on oil market developments, the ongoing U.S.-Israel conflict with Iran and several central bank decisions scheduled for this week.
The precious metal briefly dipped below $5,000 per ounce during the previous session. Increased safe-haven demand has been counterbalanced by concerns that the conflict could trigger higher inflation, while a stronger U.S. dollar has also limited gains.
Gold has largely traded within a range between $5,000 and $5,200 per ounce over the past three weeks.
Market attention is now shifting to a series of central bank meetings, most notably the Federal Reserve’s decision on Wednesday. The Fed is widely expected to keep interest rates unchanged amid uncertainty surrounding the inflationary consequences of the Iran conflict.
The Bank of Canada is also scheduled to meet Wednesday, while the Bank of Japan, Swiss National Bank, Bank of England and European Central Bank will announce rate decisions on Thursday.
RBA raises interest rates
The Reserve Bank of Australia increased interest rates by 25 basis points on Tuesday, as expected, responding to a renewed rise in inflation late in 2025 and the possibility of energy price shocks linked to the Middle East conflict.
The central bank lifted its benchmark rate by a quarter point to 4.1%, marking its second rate increase this year after a similar move in February.
However, the March decision appeared more divided, with four of the nine members of the rate-setting board voting to keep rates unchanged.
At a press conference following the announcement, RBA Governor Michele Bullock said that all board members recognized the need for tighter policy, but differed on the timing of the move—a statement traders 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 predicts $1 trillion in AI chip sales
“This is the AI future. This is where AI wants to go.”
Nvidia CEO Jensen Huang delivered an optimistic outlook for artificial intelligence during a closely watched keynote at a developer conference in California on Tuesday.
Huang highlighted the rapid growth of AI inference computing, which enables AI models to deliver 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 advanced Vera Rubin architecture with a next-generation chip developed by Groq, a startup specializing in AI inference technology whose leadership Nvidia secured through a $20 billion licensing agreement last year.
The new system is expected to deliver computing speeds 350 times faster than Nvidia’s older Hopper graphics processing units.
Against this backdrop, Huang forecast that Nvidia could generate $1 trillion in AI chip sales by the end of 2027, compared with the roughly $500 billion expected for the current year.