Iran Tensions Push Oil Prices Higher, Fuel Inflation Concerns

US stock index futures fell on Monday as tensions between the US and Iran escalated, pushing oil prices higher and heightening concerns about inflation. The recent military attacks in the Middle East have led to a surge in oil prices, with Brent crude jumping by 2%.

The increase in oil prices has contributed to growing inflation fears, which are further exacerbated by the Federal Reserve's hawkish interest-rate outlook. According to the CME FedWatch tool, there is now a nearly 60% chance of a rate hike at the September meeting, up from 41.4% just last week.

Chairman Kevin Warsh's comments at the Jackson Hole symposium on Friday added to the inflation concerns. He said that policymakers may need to raise rates if inflation doesn't ease to the central bank's 2% target. This has led market participants to look nervously ahead to the upcoming US non-farm payrolls data on September 4.

Nvidia rose by 0.72%, making it the only gainer among the 'Magnificent Seven' group of stocks, while energy stocks gained following the increase in oil prices. Most crypto stocks were higher, with bitcoin pinned above $78,000.