Dow Futures indicate a positive trajectory, as investors evaluate the escalating conflicts in the Middle East alongside a series of earnings reports from the technology sector this week. Iran has reportedly rejected another U.S. ceasefire proposal, with the ongoing conflict between the two nations posing a risk of escalation to other regions of the Gulf and potentially further disrupting essential global oil supplies. U.S. President Donald Trump has implemented new double-digit tariffs on various countries, coinciding with the artificial intelligence surge that has enabled chipmaker Intel to achieve quarterly sales that exceeded expectations.

Dow futures advanced on Friday, rebounding from a previous session’s sell-off in equities, which was driven by concerns over a potentially escalating conflict in the Middle East that ignited a fresh increase in oil prices. By 03:34, the futures contract for the Dow had inched up by 197 points, or 0.4%, while S&P 500 futures had gained 15 points, or 0.2%. Additionally, Nasdaq 100 futures had edged up by 23 points, or 0.1%. The primary indices on Wall Street experienced a decline on Thursday, following reports that Iran-backed Houthi militants in Yemen announced they had initiated attacks on Saudi tankers in the Red Sea. The strikes, alongside the ongoing tit-for-tat bombardments between the U.S. and Iran, led to Brent crude futures briefly exceeding $100 a barrel. This heightened apprehensions regarding an inflation surge propelled by energy costs, which may compel central banks, notably the Federal Reserve, to adopt a more stringent monetary policy stance in reaction. With these expectations in mind, U.S. Treasury yields increased, exerting pressure on equities. “The continued rise in energy prices is starting to put pressure on financial markets more broadly, beyond just the bond market. While central banks continue to take a measured approach to the renewed surge in energy prices, there is still plenty of scope for the turbulence in markets to ratchet higher if the U.S.-Iran conflict continues to escalate,” said Jonas Goltermann.

The U.S. military reported the completion of a 13th consecutive night of strikes on Iranian targets early Friday, indicating that tensions between Washington and Tehran remain unabated. American forces targeted Iranian military assets, encompassing drone storage facilities and coastal surveillance installations, with the objective of diminishing Tehran’s capacity to execute strikes against commercial vessels in the Strait of Hormuz. Meanwhile, Iran dismissed a new ceasefire proposal from President Trump that was conveyed to Tehran by Iraq, as reported by The New York Times. Iran’s chief negotiator conveyed to domestic media that Tehran persists in identifying issues with “America’s outlook.” The latest developments indicate that the Houthis assert they have closed the Bab el-Mandeb Strait, a vital waterway for international shipping that connects the Red Sea to the Gulf of Aden. The group announced on Thursday that it had targeted two Saudi tankers in the region, while the Saudi government verified only one of the incidents. In light of potential crude supply disruptions in the Strait of Hormuz and Bab el-Mandeb Strait, oil prices have surged in recent days, attaining heights not observed since May. By 03:13, Brent crude futures had decreased by 1.8% to $98.90 a barrel, yet remained significantly above the approximately $70 level reached following a framework — and seemingly ephemeral — U.S.-Iran ceasefire agreement in June.

In a move reflecting a strategic recalibration of trade policy, Trump enacted new double-digit tariffs on imports from 60 countries on Friday. This decision represents the White House’s ongoing efforts to regain authority over an assertive international trade approach that has faced judicial challenges. The tariffs, ranging from 10% to 12.5%, replace a global 10% levy that has now expired. The Trump administration contends that these charges are essential due to the insufficient enforcement by U.S. trading partners of bans on goods produced through forced labour. Notably, two significant U.S. trading partners — Canada and the European Union — face 10% tariffs under the arrangement, despite both possessing laws that prohibit the importation of goods produced by forced labour. However, according to sources, Trump officials have indicated that neither has effectively enforced these rules. Trump had previously implemented the 10% worldwide tariffs following the Supreme Court’s decision to overturn his extensive “Liberation Day” duties in a significant ruling in February. In support of the new tariffs, the president is invoking a provision of a U.S. trade act from 1974 that empowers the White House to impose import taxes and other sanctions on nations identified as participating in “unjustifiable” or “discriminatory” trade practices. Media reports indicate that additional tariffs may be forthcoming in the near term, as the Trump administration has suggested implementing further levies to counter what it characterises as inequitable trade practices within the manufacturing sector.

Shares of Intel advanced in extended hours trading, following the U.S. chipmaker’s second-quarter results that exceeded Wall Street expectations and indicated progress in the company’s ongoing turnaround effort. Intel reported a 25% increase in sales, exceeding estimates of 11%. The company also forecasted its current-quarter revenue to range between $15.8 billion and $16.8 billion, surpassing expectations. CEO Lip-Bu Tan, who has been tasked with overhauling the firm, credited artificial intelligence for “driving unprecedented demand for compute,” adding that Intel is now well-positioned for “sustainable growth.” Intel is poised to be a significant beneficiary of the AI boom, as it manufactures the chips essential for advanced AI agents capable of completing tasks for users. The company stands as one of the few American operators of chip fabrication plants, a reality that supported the U.S. government’s decision to acquire a stake in the business. The Trump administration has demonstrated a pronounced interest in diminishing U.S. dependence on semiconductor manufacturers located in Asia.

In other developments, amid a relatively subdued economic data landscape, attention will turn to a flash reading of U.S. manufacturing and services sector activity for July from S&P Global, scheduled for release on Friday. S&P’s composite purchasing managers’ index for June stood at 52.2, bolstered by a surge in the services sector attributed to the FIFA World Cup tournament co-hosted by the U.S., Canada, and Mexico. A reading above 50 signifies expansion. Manufacturing activity has risen for the fourth consecutive month, as businesses strive to bolster their supply reserves in response to potential shortages and heightened prices stemming from the Iran war.