stocks open lower and oil rises as US and Iran exchange strikes

U.S. stock futures moved lower on Monday as investors reacted to escalating tensions in the Middle East and prepared for a busy week of major corporate earnings and key economic data.

Markets were pressured after Iran and the United States exchanged airstrikes over the weekend. The geopolitical tensions pushed oil prices higher, with Brent crude rising above $78 per barrel and WTI climbing above $74.

Asian markets were mostly weaker, led by a sharp decline in South Koreas Kospi, while Japan and China also posted losses.

Attention now turns to the start of the U.S. earnings season. Markets will also closely watch Tuesdays U.S. CPI inflation report, which could influence expectations for future Federal Reserve policy.

Gold prices fell sharply on Monday, dropping below the $4,100 level as renewed Middle East tensions strengthened the U.S. dollar and weighed on the precious metal.

The decline was driven by rising oil prices, which fueled inflation concerns and reinforced expectations that the Federal Reserve will maintain a hawkish stance.

Bitcoin remained relatively resilient on Monday, trading near $63,800 despite heightened geopolitical tensions. The cryptocurrency was little changed on the day and remained higher for the week.