US Stocks Rise as Iran-US Tension Eases, Inflation Outlook Remains Uncertain
US stock index futures are slightly higher on Tuesday as signs of progress towards reopening the Strait of Hormuz weigh on oil prices. The tension in the Middle East had led to a surge in energy costs and inflation concerns, which have been a major focus for investors.
The talks between Oman and Iran over shipping in the crucial waterway are now in an advanced stage, according to Qatar's foreign ministry spokesperson. This comes after an exchange of demands between the US and Iran complicated efforts to reopen the strait.
Brent crude futures have turned negative, having gained 2% earlier in the session to reach one-week highs. Rising energy costs have spurred inflation concerns and increased the chances of higher interest rates around the world.
The US Federal Reserve's policy path remains uncertain, with traders split almost evenly on whether the central bank will increase rates in September or choose to pause. The July CPI report is expected to provide key insights into the inflation outlook, which could shape market expectations.
Some stocks are showing strong gains in premarket trading, including Riot Platforms, which jumped 17.4% after a media report that it clinched a $9 billion deal with Anthropic. Intel, however, dipped 1%, extending Monday's losses, as it announced the pricing of a $20 billion stock offering.