U.S. equity futures edged lower on Tuesday, as escalating friction between the U.S. and Iran pushed oil prices higher and heightened worries over rising inflation. The move in energy markets weighed on investor sentiment ahead of key economic reports and corporate earnings.
At 4.17 p.m. (Bangkok Time), Dow Jones Industrial Average futures were down by 0.09%. S&P 500 futures retreated by 0.52%, and Nasdaq-100 futures showed a steeper decline of 1.14%.
Energy markets responded to stronger rhetoric from President Donald Trump, who announced plans to intensify pressure on Iran while warning Oman against interfering with U.S. objectives in the Strait of Hormuz. This contributed to a rally in crude prices on Tuesday, with Brent oil futures surged 0.20% to $91.05 per barrel, while U.S. benchmark West Texas Intermediate advanced 0.63% to $85.03 per barrel. The move coincided with the US Strategic Petroleum Reserve falling to its lowest reading since 1982.
Rising crude costs revived market anxieties about inflation, reflected in an upward shift in Treasury yields. The yield on the 30-year US Treasury bond climbed to its highest mark since June 2007.
Investors are also awaiting a series of economic releases, including July data on import and export prices, as well as reports on housing starts and pending home sales. Home Depot is scheduled to announce its second-quarter results prior to market open.
