US stock futures remained flat Wednesday as investors weighed rising oil prices against escalating geopolitical risks. Crude climbed 2% to $85 a barrel on renewed fighting between the US-Israel alliance and Iran, with Tehran’s proxy groups launching cross-border attacks. The conflict’s persistence has intensified supply chain concerns, particularly for energy firms reliant on Middle Eastern stability.

Oil’s surge has amplified market volatility, with energy stocks like ExxonMobil and Chevron gaining traction as traders bet on sustained price volatility. While broader indices like the S&P 500 edged higher, analysts warn that prolonged unrest could disrupt global trade routes and inflationary pressures. The energy sector faces heightened scrutiny as companies reassess exposure to politically unstable regions.

Geopolitical tensions have also triggered a flight to safety, boosting demand for gold and Treasury bonds. However, the US-Israel alliance’s military posture suggests limited near-term de-escalation, keeping oil markets on edge. Investors are closely monitoring OPEC+ output decisions, as any production adjustments could further exacerbate price swings.

The situation underscores the fragility of global markets amid overlapping crises. While oil prices remain anchored by near-term supply fears, the broader economic impact hinges on how swiftly regional hostilities abate. For now, market volatility reflects a delicate balance between geopolitical risk and macroeconomic resilience.