Dow futures crash over 500 points: 5 things to know before Wall Street opens

• Trump's comments in Ankara ended diplomatic hopes with Iran as Revolutionary Guards targeted U.S. military sites in Bahrain and Kuwait following U.S. strikes on Iran after tanker attacks in the Strait of Hormuz.
• Energy stocks bucked the broader selloff, with Exxon Mobil gaining 3% and Chevron up 2.4% in premarket trading as Brent and WTI crude spiked on renewed supply disruption risks.
• Fed minutes due Wednesday will be closely watched for officials' views on inflation risk and energy-market stress, as markets currently price in expectations for potential policy adjustments under Chair Kevin Warsh.

Market Summary: US Futures Plunge on Iran Tensions and Oil Surge

Key Developments:

US stock futures tumbled sharply Wednesday morning after President Trump declared the Iran peace memorandum "over" during remarks in Ankara, triggering a spike in oil prices and renewed inflation concerns. Dow futures crashed 564 points (-1.1%), S&P 500 futures fell 0.9%, and Nasdaq 100 futures led declines at -1.3%, reaching a four-week low.

Market Impact:

The geopolitical escalation follows Iran's Revolutionary Guards targeting US military sites in Bahrain and Kuwait after Washington struck Iranian positions. These attacks came after tanker incidents in the Strait of Hormuz, a critical chokepoint for global oil shipments.

Crude prices surged over 5%, with both Brent and WTI jumping as traders priced in supply disruption risks. The oil spike presents a dual threat: supporting energy stocks while potentially forcing the Federal Reserve to maintain tighter monetary policy longer due to inflation pressures.

Sector Rotation:

Energy stocks bucked the broader selloff in premarket trading. Chevron gained 2.4%, Exxon Mobil rose 3%, and ConocoPhillips advanced 2.2%. Devon Energy, Occidental Petroleum, APA, and Diamondback Energy also posted gains, indicating investors are repositioning rather than exiting equities entirely.

Technology stocks bore the brunt of selling pressure, as the rate-sensitive sector faces heightened risk from potential inflation-driven bond yield increases.

Outlook:

The Fed's June meeting minutes, due Wednesday, will be closely scrutinized for officials' views on inflation risks and energy market stress under Chair Kevin Warsh. Markets remain divided on future rate policy, with competing forces of oil-driven inflation and AI-earnings strength creating uncertainty for the trading session ahead.