Tonight’s Highlights | Middle East Turmoil Continues to Ripple Through Markets, U.S. Stock Futures Trade in Tight Range

Despite heightened Middle East tensions following U.S. airstrikes on Iranian nuclear facilities over the weekend, markets reacted calmly. U.S. stock index futures traded in a tight range, while major European indexes broadly declined.

Market participants are closely watching for potential Iranian retaliation, such as closing the Strait of Hormuz, which handles about one-fifth of global oil shipments. A prolonged closure could push international oil prices above $100 per barrel.

Brent crude futures spiked nearly 6% on Monday but later erased gains and turned lower.

Vital Knowledge analyst Adam Crisafulli wrote in a Monday report: “While Iran has repeatedly threatened to close the Strait of Hormuz, investors aren’t panicking about an oil market collapse, and this calm approach feels reasonable at this stage.”

“No doubt, geopolitical risks in the Middle East are elevated, but we believe the conflict’s extreme asymmetry (Iran and its proxies’ military capabilities are significantly limited), Iran’s diplomatic isolation (few allies are willing to aid it), and relatively ample global crude supply will help contain spillover risks,” Crisafulli added.

Last week, the S&P 500 dipped 0.15%, marking its second consecutive weekly decline. Despite recent softness, the index closed Friday less than 3% from its all-time high.

In pre-market trading, nuclear energy stocks rallied, with Nine Energy Service surging over 21% and Centrus Energy up nearly 5%. Super Micro Computer gained over 4% after announcing plans to issue $2 billion in convertible senior notes. Novo Nordisk fell 5.5% pre-market after ending its partnership with Hims & Hers.

Company News

Tesla Launches Robotaxi Pilot in U.S.
On June 22, Tesla kicked off its Robotaxi pilot service in Austin, Texas. Elon Musk confirmed the launch, noting that initial riders will pay a flat $4.20 fee.
The Robotaxi, based on the Model Y and equipped with Tesla’s cutting-edge autonomous driving system, starts with a fleet of 10 vehicles in an invite-only phase. Early users include Tesla employees, owners, and Powerwall customers, with free or nominal fees.
Apple Expected to Concede in EU App Store Talks
Reports indicate Apple is negotiating with the EU to modify its App Store policies to avoid fines. Apple is likely to relax its “steering” rules, which restrict users from accessing content outside the App Store. An announcement on concessions is expected soon.
Eli Lilly to Submit Efsitora for Type 2 Diabetes by Year-End
On June 22, Eli Lilly shared detailed results from three Phase 3 trials (QWINT-1, QWINT-3, and QWINT-4) evaluating once-weekly insulin efsitora alfa (efsitora) in adults with type 2 diabetes (T2DM). The trials tested efsitora in patients new to insulin, those on daily basal insulin, and those using basal plus mealtime insulin. All studies met their primary endpoint, showing efsitora was non-inferior to daily basal insulin in reducing A1C levels. Lilly plans to submit efsitora for regulatory approval globally by year-end.
Maersk: Still Navigating Strait of Hormuz but Ready to Reassess
On June 22, Maersk said it’s closely monitoring the Middle East situation, particularly with U.S. involvement in the conflict. The company continues to use the Strait of Hormuz but is prepared to reassess based on new information, stating, “We’ll keep tracking safety risks for specific vessels in the region and are ready to act as needed.”
Faraday Future: MPV Pre-Orders Reach 4,000 Units
On June 23, Faraday Future announced that its FX unit signed a 500-unit deposit agreement for the FX Super One MPV with Telling Inc., a North American and TikTok-focused MCN live e-commerce service provider, bringing total B2B pre-orders to 4,000 units. This marks the third MCN B2B co-creation partner to sign a deposit deal with FX. Additionally, Pinnacle, one of California’s largest real estate brokerages, placed a 1,000-unit deposit for the Super One.