Oil Price Surge Triggers Inflation Fears, US Stock Futures Tumble

US stock futures fell on Monday after a fresh surge in oil prices revived inflation concerns and pushed Treasury yields higher, putting technology shares under pressure.

Brent crude climbed towards $108 a barrel following President Donald Trump's rejection of Iran's latest proposal to reopen the Strait of Hormuz. Investors are also preparing for US inflation and jobs data that could determine whether the Federal Reserve follows September's rate increase with another move in October.

The 10-year Treasury yield held around 5.2%, near its highest level since 2007, while the 30-year yield traded at 5.51%. MUFG senior currency analyst Lloyd Chan said the simultaneous rise in oil and long-term bond yields suggests investors are attaching a greater inflation risk to the global outlook.