Wall Street set to open lower as U.S.-Iran tensions resurface

Saudi Arabia

Saudi oil attack rattles oil prices

Oil prices posted a record surge early Monday after more than 5% of the world’s supply was knocked out by drone attacks on Saudi Arabian oil facilities over the weekend.

Brent crude, the international benchmark for oil prices, jumped 8.7% to $65.49 a barrel in the first minutes of trading in Europe after initially gaining 19.5% to $71.95 following the attacks. U.S. West Texas Intermediate crude futures were up $4.72, or 8.61% to $64.50 a barrel at 5:30 a.m. ET.

The Trump administration has blamed Iran for the strikes on the Abqaiq facility and Khurais oil field. On Sunday, President Donald Trump tweeted that the U.S. is locked and loaded and ready to respond to the attacks.

“Saudi Arabia oil supply was attacked. There is reason to believe that we know the culprit, are locked and loaded depending on verification, but are waiting to hear from the Kingdom as to who they believe was the cause of this attack, and under what terms we would proceed!” Trump wrote on Twitter.

Stocks poised to open lower

U.S. stock index futures pointed to a lower open on Monday, as traders reacted to renewed tensions in the Gulf after Iran was blamed for the weekend’s attack on Saudi Arabian oil facilities.

At around 5:30 a.m. ET, the blue-chip Dow futures were down 98 points, or about 0.36% to 27,115.5. Futures on the broader S&P 500 fell 11.88 points, or around 0.39% to 2,996.62 while those on the tech-heavy Nasdaq 100 futures indicated a decline of 53.25 points, or roughly 0.67% to 7,855.

UAW members strike at General Motors factories

Tens of thousands of United Auto Workers in the U.S. staged a strike at General Motors (NYSE: GM) factories on Sunday night over contract dispute. The strike began at 11:59 p.m. ET Sunday, with the union’s 46,000 hourly workers walking off at 33 factories in nine states across the country and 22 parts other facilities.

It’s the first major strike at GM since the last stoppage in 2007. Talks between the union and the auto giant are set to resume today. Shares of General Motors were down 2.08% to $38.05 in premarket trading.