Middle East Tensions Escalate as Iran Rejects Peace Negotiations

US equity futures traded lower on Monday morning as geopolitical risks intensified in the Middle East. Investors reacted cautiously to news that diplomatic efforts have stalled, creating a risk-off environment across major indices before the official market open. The primary driver of the pre-market slump is Iran's reported refusal to engage in renewed peace negotiations. This diplomatic impasse increases the likelihood of regional instability, which historically triggers volatility in global energy markets and prompts a shift toward safe-haven assets. While specific percentage declines for the futures contracts were not detailed, the sentiment shift is evident in the pre-bell trading patterns. Market participants are closely monitoring the situation for any signs of escalation that could impact oil supply chains or critical global trade routes. The immediate market impact is characterized by increased risk aversion. Traders are expected to pivot toward defensive positions, including gold and US Treasuries, as the geopolitical premium returns to energy pricing and equity valuations are pressured by uncertainty.