[MARKET UPDATE] US equity futures are relatively unchanged at the reopen, while oil futures are mildly lower following a lack of major geopolitical escalation over the weekend and as participants await US announcing the toughest economic sanctions on Iran

The pattern here is a familiar one in crude: geopolitical risk premia built into the Friday close tend to bleed out when the weekend passes without escalation, and the reopen gap is the unwind of that insurance rather than new information. The distinction worth drawing is between a supply event and a sanction headline; sanctions on Iranian barrels have historically tightened effective supply only as far as enforcement, waivers, and buyer compliance allow, and past rounds have ranged from genuinely binding to largely priced theatre, with the crude response tracking the enforcement detail rather than the announcement language. The offset channels are spare capacity willingness from Gulf producers, any strategic stock response from Washington, and how much Iranian volume was already flowing at a discount to Asia, since barrels already outside the official system are harder to remove twice. The tells ahead are the sanction text itself, tanker tracking and insurance signals rather than the tape, and whether equity futures keep fading geopolitical headlines, which would suggest the risk premium is being treated as a two-way trade rather than a trend. Until the terms land, positioning tends to stay light on both sides.