Oil Price Surge Sparks US Market Jitters Amid Iran Tensions

US stock futures fell on Tuesday as investors returned from Labor Day to confront a convergence of risks. Crude oil prices approached triple digits, while an escalating confrontation between Washington and Tehran added to tensions.

Brent crude rose 1.4% to $99.73 per barrel, its highest level in six weeks, driven by Iran's warning that further US economic pressure would be met with a maritime exclusion zone spanning the Persian Gulf.

The threat of deeper disruptions to global supply kept energy markets on edge, maintaining a significant risk premium amidst heightened tensions.

Meanwhile, investors are now pricing in a 60% probability that the Federal Reserve will raise its benchmark rate by a quarter percentage point next week.