US stock market to open flat as traders await inflation report amid Middle East tensions

The US stock market is likely to open flat on Wednesday, 11 March, as investors continue to monitor tensions in the Middle East, which have entered the 12th day, while also awaiting the February inflation report.

Futures of the three key averages—the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite—are trading flat in pre-market trading. The S&P 500 fell 0.2% on Tuesday, dropping further below both its 50- and 100-day moving averages.

While the S&P 500 is still trading within 3% of its January record, trading beneath the surface has been choppy in the US stock market, which had remained largely flat for the year before the bombing in the Middle East began.

The CBOE Volatility Index jumped above 35 earlier this week, the highest level since the tariff turmoil triggered by US President Donald Trump in the spring of 2025, Bloomberg reported.

Later in the day, a report is expected to show that consumer prices likely picked up in February as tariffs were passed on to consumers, which could add to worries about rising gasoline costs in the months ahead. The levies were deemed unconstitutional late last month.

Brent crude is back above $90

Crude oil prices have regained strength in Wednesday's trade, with Brent crude futures climbing above $90 per barrel to the day's high of $93.

In the previous session, prices had settled 11% lower, marking the biggest single-day fall in four years, after media reports suggested that the International Energy Agency was proposing to release millions of barrels to offset supply disruptions caused by the US-Iran war, which led to the closure of the Strait of Hormuz, a passage that typically handles one-fifth of global oil flows.

Germany’s economy minister said on Wednesday that the country would release part of its oil reserves following a request from the International Energy Agency. The IEA has asked member states to release oil reserves totalling about 400 million barrels.

Although Donald Trump earlier indicated that the war could end sooner than expected, tensions in the region remain on high alert as Israel and Iran continue to exchange attacks.

Iran expands targets from oil routes to financial centres in the Gulf

Iran has reportedly been attacking cargo ships attempting to pass through the Strait of Hormuz. The attacks from Tehran intensified after President Trump threatened in a social media post that the US would dramatically escalate attacks if Iran attempted to close the strategic waterway.

Further escalating tensions, two Iranian drones reportedly struck near Dubai International Airport, while Iran’s joint military command announced it would begin targeting banks and financial institutions in the Middle East, indicating that the conflict in the region could intensify further.

Such potential attacks would particularly put at risk Dubai, in the United Arab Emirates, which hosts many international financial institutions, as well as Saudi Arabia and the island kingdom of Bahrain.

(With inputs from agencies)

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