Oil Prices Soar on US-Iran Tensions, Markets on Edge Ahead of Inflation Data

US stock index futures slipped on Tuesday as fresh hostilities in the Middle East sent oil prices to their highest since late July, deepening market gloom ahead of inflation data later this week.

The Dow E-minis fell 0.75%, S&P 500 E-minis slipped 0.31%, while Nasdaq 100 E-minis eased 0.04%.

Investors are looking to the Consumer Price Index report due on Friday and the Producer Price Index reading on Thursday for cues on inflation, which Fed chair Kevin Warsh has emphasized as a priority in bringing down prices.

Some investors believe that mild enough inflation data will allow the Federal Reserve to refrain from tightening policy, but traders see a 60.6% chance of an interest rate hike this month, according to the CME FedWatch tool.