US Stock Futures Fall Amid Iran Clashes and Hawkish Fed Outlook

US stock futures fell on Monday as military clashes between the US and Iran pushed up oil prices, fueling inflation anxiety. The increased interest-rate outlook from Federal Reserve policymakers is also causing concern. Traders now see a nearly 60% chance of a rate hike at the September meeting, up from 41.4% last week.

According to Fed Chair Kevin Warsh, policymakers may need to increase interest rates if inflation doesn't ease to the central bank's 2% target. The comments came after mixed data in recent weeks, including a consumer inflation report that showed price pressures were mild but the Personal Consumption Expenditures reading was hotter than expected.

The ambiguity surrounding economic growth and inflation could raise the stakes for the upcoming US employment report on September 4. Market participants are looking ahead nervously to this data amid heightened monetary policy uncertainty, said Kyle Rodda of Capital.com.