US Stocks-Wall St futures muted as US-Iran impasse lifts oil prices
SPY•Futures subdued as oil prices rise
U.S. stock index futures were subdued on Tuesday as a deadlock in U.S.-Iran talks pushed up oil prices and discouraged investors from taking risks while the inflation outlook remained uncertain.
President Donald Trump on Monday countered Iran's conditions for a peace deal by demanding reparations for people killed in wars, attacks and protests, complicating efforts to reopen the Strait of Hormuz.
Brent crude futures gained 2% to hit over one-week highs, building on a more than 5% jump clocked in the previous session as supply disruption anxiety continued.
Rising energy costs have spurred inflation concerns and chances of interest rate hikes by central banks around the world.
Readings of July consumer and producer price inflation due later this week could be key in ascertaining the U.S. Federal Reserve's interest rate path, given the central bank's focus on the inflation mandate and Chair Kevin Warsh's stance on cutting back forward guidance on rates.
