FX.co ★ US Futures Edge Lower on Hormuz Uncertainty

US stock futures edged lower on Monday as oil prices continued to climb, with fading hopes for an agreement to reopen the Strait of Hormuz keeping inflation risks and the interest rate outlook in sharp focus. Iran said its talks with Oman were nearing an accord but denied holding direct negotiations with the US, contradicting Washington’s assertion that a deal was close. Investors also shifted their attention to key US inflation figures due this week, after July’s jobs report unexpectedly showed a contraction, bolstering expectations that the Federal Reserve may hold off on further rate increases. Futures markets now imply about a 44% chance of a 25-basis-point hike in September, down from 67% a week earlier. On the corporate front, results from major AI-linked firms, including Applied Materials, Cisco and CoreWeave, are scheduled for release this week.