FX.co ★ US Futures Rise Despite Mideast Escalations

US stock futures edged higher on Monday as investors tracked escalating conflict involving Iran and a sharp rise in oil prices. Over the weekend, the US struck military targets on Iran’s main oil-export hub at Kharg Island and warned it could extend attacks to energy infrastructure if Tehran disrupts shipping through the Strait of Hormuz. Markets are also weighing reports that Washington will soon unveil a multinational coalition to escort vessels through the narrow chokepoint that connects the Persian Gulf to global markets. Last week, the Dow declined 1.99%, the S&P 500 fell 1.6% and the Nasdaq Composite slid 1.26%, marking a third consecutive weekly loss for all three major indexes as geopolitical tensions pressured risk appetite. The jump in energy prices and mounting inflation concerns have also dampened expectations for Federal Reserve interest rate cuts.