The US Wall Street market suffered a weak start to the week after recording a decline last week.
All major indexes recorded losses as the US government agreed to cooperate with Israel in launching an attack on Iranian nuclear facilities, thus increasing the risk of a full-scale conflict in the Middle East.
Dow Jones futures fell 0.3%, the S&P 500 weakened 0.3%, while the technology-focused Nasdaq fell 0.5%.
President Donald Trump announced over the weekend that the US military had launched several airstrikes on three major Iranian nuclear facilities, namely Fordow, Natanz and Isfahan.
Trump also described the attacks as an “extraordinary military success” aimed at disabling Iran’s ability to enrich uranium and curbing the country’s nuclear threat.
Trump warned that any Iranian retaliation would be met with greater force and he also stressed that there were many other targets that could be attacked if Iran refused to choose a path of peace.
Iran has threatened to attack US assets in the Middle East and is considering action to block the Strait of Hormuz, a key global oil export route that risks sharply raising oil prices.
Trump's action has been criticized by several US politicians for being made without congressional approval, thus being considered a violation of the War Powers Act of 1973.
This week's focus will also be on a series of important economic readings, including the preliminary PMI reading for June, which will be released on Monday.
The report is expected to show slower growth in business activity than the previous month, amid continued concerns about disruptions from Trump's trade tariffs.
Several Federal Reserve (Fed) officials are set to speak this week, most notably Fed Chairman Jerome Powell, who will testify for two days before Congress starting on Tuesday.
Investors remain concerned about the escalating Israel-Iran conflict following the US's involvement in military tensions in the Middle East region.
