US stock futures fall as fading Iran peace prospects drive up oil, yields
SPY•Futures slip as oil and yields rise
Futures tied to the S&P 500 and Nasdaq slipped on Tuesday, with oil holding near recent highs and government bond yields hitting multi-year peaks as chances of a peace deal between the U.S. and Iran waned, rekindling inflation concerns.
Iran would shift to a "fully offensive" military posture because efforts to negotiate a permanent end to the war with the U.S. have stalled, a senior Iranian official told Reuters. Washington, too, has ruled out extending a temporary ceasefire agreement that expired on August 17.
The developments pushed Brent crude futures up 0.4% at around three-week highs.
The yield on the 30-year Treasury bond stood at its highest since 2007, while that on the benchmark 10-year maturity held near its highest level since January 2025.
