Stocks rose and oil prices retreated on Monday as investors shrugged off the continuation of hostilities between Israel and Iran over the weekend.

Analysts at Citigroup emphasize that fluctuations in oil prices will play a crucial role in shaping stock market trends in the near future, as investors keep a close eye on the escalating tensions in the Middle East.

Investors had two reactions to Israel's broad attack on Iran late Thursday: They sold stocks broadly and bought crude oil and gold. Futures trading suggests the Standard & Poor's 500 Index will open down 52 points.

Stocks fell on Tuesday as Trump signaled that the U.S. could enter the war between Israel and Iran. Tariffs aren’t the only bearish signal on investors’ minds. Now they have to worry about a brewing war in the Middle East as well.

S&P 500 E-Mini futures (ESM25) are up +0.29%, andJune Nasdaq 100 E-Mini futures (NQM25) are up +0.36% this morning, pointing to a slightly higher open on Wall Street after yesterday’s drop, while investors await the Federal Reserve’s policy decision and updated projections,