Wall St futures rise as US, Iran pause hostilities

A 6.3% slide in Brent crude prices LCOc1 to $90.6 a barrel weighed on shares of energy companies such as Occidental Petroleum OXY.N and Exxon Mobil XOM.N. They were down 3.8% and 2.6%, respectively.

Markets ended last week rattled by escalating Middle East tensions, with investors worried the conflict could fuel further price pressures ahead of the Federal Reserve's monetary policy decision later this week.

Despite the announcement of the pause in attacks, shipping through the crucial Strait of Hormuz remained low. Attacks by Yemen's Iran-aligned Houthis on Saudi oil installations along the Red Sea coast, another waterway vital to the global oil trade, also kept traders on edge.

The Fed has offered few clues on monetary policy outlook since Kevin Warsh took over as chair, fueling uncertainty over the path ahead for interest rates.

Investors are pricing in at least 25 basis points worth of rate hikes this year, with a 31% chance it could come as early as this week, LSEG-compiled data showed.