Oil Prices Rise Amid Middle East Tensions, Weighing on US Stock Futures

Wall Street is balancing fresh optimism over US inflation against a renewed energy shock that could complicate the Federal Reserve's next move.

Futures on major U.S. stock indexes were little changed on August 14 after the S&P 500 closed at a record high the previous day, restrained by rising oil prices amid a renewed escalation in the Middle East.

Brent crude futures rose 1% on Friday, prompting market participants to assess central banks' next moves more cautiously.

Elwin de Groot, Rabobank's head of macro strategy, noted that investors may react less sharply to geopolitical shocks, but central banks are not yet able to ignore recent developments. He said the market is also closely watching economic data, as energy prices remain high and Fed Chair Kevin Warsh has given no clear signals about the regulator's next decision.