US Stock Futures Rise With Focus on Mideast Tensions

U.S. stock index futures edged higher on Monday as easing oil prices helped calm sentiment.

This despite ongoing attacks between Iran and Israel and increased focus on the upcoming Federal Reserve meeting.

Wall Street indexes shed more than 1 per cent on Friday as oil prices surged 7 per cent after Israel and Iran traded air strikes, feeding investor worries that the combat could widely disrupt oil exports from the Middle East.

Meanwhile, the dangers of further escalation loomed over a meeting of the Group of Seven leaders in Canada, with U.S. President Donald Trump expressing hope on Sunday that a deal could be done.

But on the fourth day of the war, there are yet no signs of the fighting abating.

Crude prices, however, pulled back slightly from January highs, offering some respite to investors worried about a resurgence in inflation.

The surge in oil prices comes ahead of the Fed’s monetary policy decision on Wednesday, when policymakers are widely expected to keep interest rates unchanged.

Investors will focus on Fed Chair Jerome Powell’s comments as well as the central bank’s updated projections for monetary policy and the economy for clues on potential rate cuts later this year.