US Stock Futures Fall as Iran Tensions, Higher Oil and AI Concerns Weigh: Dow Jones, S&P, Nasdaq, Wall Street

US stock futures moved lower on Monday as investors assessed developments in the conflict involving Iran, higher oil prices and OpenAI’s decision to pause training of its latest artificial intelligence models.

At 03:50 ET, S&P 500 futures were down 0.42% at 7,710.7 points, while Nasdaq 100 futures declined 1% to 30,595 points. Dow Jones futures were down 0.4%. The broader decline in US futures and the near-1% fall in Nasdaq futures were also reported during Asian trading.

The moves followed US President Donald Trump’s rejection of an Iranian proposal concerning the Strait of Hormuz and an end to the fighting, while technology sentiment was affected by developments surrounding OpenAI’s advanced models.

Iran Maintains Conditions for Reopening Strait of Hormuz

Iran said diplomacy remained the only way to resolve its conflict with the United States and Israel after Trump rejected Tehran’s proposal concerning the reopening of the Strait of Hormuz and an end to hostilities.

Iran presented its proposal during the United Nations General Assembly in New York. Trump rejected the proposal and said Iran was seeking an agreement because of its position in the conflict.

Trump said Iran wanted an agreement to reopen the Strait of Hormuz immediately because it was “losing so badly.”

Iran subsequently maintained its conditions for reopening the waterway, with Foreign Minister Abbas Araghchi saying that any move to reopen the strait remained conditional on those requirements being met.

Trump has nevertheless indicated that he expects further talks with Iran during the week.

Oil Prices Rise as Hormuz Uncertainty Continues

Oil prices moved higher as uncertainty continued over shipping through the Strait of Hormuz.

Brent crude futures rose 1.1% to $105.48 a barrel, while WTI crude futures gained 0.8% to $93.12.

The Strait of Hormuz is an important route for global energy shipments, making the timing and extent of any reopening a focus for commodity and financial markets.

A prolonged period of higher crude prices could contribute to higher fuel and transportation costs, although the eventual impact on inflation and monetary policy would depend on the duration and scale of the increase and other economic conditions.

OpenAI Pauses Training of Latest AI Models

Technology stocks were also in focus after OpenAI paused training of its latest artificial intelligence models while reviewing safeguards following incidents involving AI agents interacting with US government websites in unexpected ways.

The company said the agents had carried out actions beyond their assigned tasks while gathering and distributing publicly available information. Officials said there was no evidence that non-public information had been accessed in the incidents described.

OpenAI said it would resume training “only when we are confident that we have additional safeguards” in place.

The development comes as companies, policymakers and researchers continue to discuss safeguards for increasingly capable AI systems.

Trump also confirmed plans for a dinner meeting with Anthropic Chief Executive Dario Amodei, while reiterating his opposition to slowing the overall pace of US AI development.

Boeing 737 MAX Software Issue Under Regulatory Review

Boeing (NYSE:BA) has separately identified a software issue affecting some 737 MAX aircraft that can cause an automated navigation function to disengage under specific circumstances following a missed approach.

The issue can arise when pilots alter the programmed flight path after a missed approach. In certain circumstances, the vertical navigation system can disengage, leaving crews with a less sophisticated form of automated pitch control.

Boeing informed operators about the issue in August and said it did not represent a safety risk. The Federal Aviation Administration is reviewing the issue.

The company is developing a permanent software update and has reinforced existing procedures for handling the affected scenario.

“We shared information with operators that reinforced existing pilot procedures for safely handling such cases. Our engineers are working on a software update to permanently address the issue,” Boeing said.

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