United States futures traded slightly lower on Monday night (Tuesday AEST) as investors weighed signs of progress towards reopening the Strait of Hormuz against lingering doubts over whether the U.S. and Iran can reach a broader resolution to the conflict.
By 10:20 am AEST (12:20 am GMT), Dow futures, S&P 500 futures and Nasdaq 100 futures had each declined around 0.1%.
The moves followed slight declines for major benchmark averages on Monday as uncertainty surrounding the Middle East conflict continued to weigh on markets.
Iran said it was nearing an agreement with Oman to reopen the Strait of Hormuz, but Tehran has continued to resist direct negotiations with the U.S. until several conditions are met.
Iranian Foreign Minister Abbas Araghchi said on Sunday there was “no possibility of restarting negotiations” as long as the U.S. continued violating the June memorandum of understanding and failed to compensate Iran for those violations.
Oil prices jumped on Monday as uncertainty over the conflict persisted. West Texas Intermediate crude futures settled 5.1% higher at $82.13 a barrel, while international benchmark Brent crude rose 5% to $87.72.
Investors will next turn their attention to key inflation data, with the July consumer price report and producer price index due later in the week.
The data could prove particularly important after a weak U.S. jobs report complicated the Federal Reserve's interest-rate outlook.
On the earnings front, healthcare products company Cardinal Health and sneaker manufacturer On Holdings are scheduled to report early in the U.S. session, while Cava Group, CoreWeave and Super Micro Computer are due to release results later in the day.
