U.S. stock futures tumble, oil prices surge as Hamas attack on Israel rattles investors

Meanwhile, oil futures
CL00,
+3.74%
surged late Sunday. Analysts said crude prices could rise in the short term due to possible knock-on effects on Iranian oil exports.

Read more: Oil prices jump 3% after Hamas attack on Israel

“With the Middle East Powder Keg igniting again, oil prices will rise tangentially to heightened geopolitical risks,” Stephen Innes, managing partner at SPI Asset Management, wrote in a note Sunday. “We should expect continued turbulence in crude oil prices as the rates-driven recession fears give way to the worrisome terrorist escalation in the Middle East.”

On Saturday, Hamas launched a sweeping attack on Israel, killing hundreds. Israel responded by bombarding the Gaza Strip, and on Sunday the Israeli government declared war, with Prime Minister Benjamin Netanyahu vowing vengeance and warning of a long and difficult fight ahead. The Wall Street Journal reported Iran helped plan the attack, a development that — if confirmed — could broaden the conflict.

Also see: Israeli stocks slump in first day of trade since Gaza attack

On Friday, the Dow Jones Industrial Average 
DJIA
 rose 288.01 points, or 0.9%, to close at 33,407.58, while the S&P 500 
SPX
 gained 50.31 points, or 1.2%, to finish at 4,308.50 and the Nasdaq Composite
COMP
climbed 211.51 points, or 1.6%, to end at 13,431.34.

On the week, the Dow fell 0.3% while the S&P 500 ticked up 0.5% and the Nasdaq rose 1.6%. The Dow fell for the third week in a row, while the S&P 500 snapped a four-week losing streak and the Nasdaq rose for the second straight week, according to Dow Jones Market Data.

Investors are awaiting September inflation data that will be released this week, and the start of the third-quarter earnings season, with results coming this week from JPMorgan Chase & Co.
JPM,
+1.54%
and Delta Air Lines
DAL,
+1.54%,
among others.