Stock futures fall after U.S. strikes Iran; Wall Street heads for winning month: Live updates

U.S. forces struck Iranian rocket launchers at Larak Island in the Strait of Hormuz early Monday, sending stock futures lower as geopolitical tension flared in a critical energy chokepoint. The military action reignited escalation concerns after a month of steady equity gains.

The Dow Jones Industrial Average entered Monday up 2.1% for August, tracking toward its fifth consecutive monthly advance. Futures reversed that momentum in pre-market trading as investors weighed the risk of further conflict in a waterway that handles roughly one-fifth of global oil traffic.

The strike targeted military infrastructure on Larak Island, a strategic position near the narrowest point of the Strait of Hormuz. Iran has previously threatened to close the passage in response to Western military pressure, raising the stakes for energy markets and broader risk sentiment.

August's rally had been fueled by cooling inflation expectations and resilience in consumer spending, but Monday's geopolitical shock tests whether equity strength can withstand supply-side energy risk. The Dow's five-month winning streak would match its longest run since 2021 if the month closes in positive territory.