Oil Tops $100 for First Time Since July Amid Middle East Conflict

U.S. stock index futures remained subdued on Wednesday as Brent crude prices rose above $100 for the first time since July, driven by an intensifying Middle East conflict.

The increased oil prices have raised concerns about inflation and sparked expectations of a potential interest rate hike this month from the Federal Reserve. According to data from the CME FedWatch tool, markets now see a 60.4% chance that rates will be increased by 25 bps when the central bank meets next week.

Higher oil prices and rising interest rates remain the main risks to equities in the near term, according to Morgan Stanley analysts led by chief U.S. equity strategist Mike Wilson.

Gains in tech stocks have helped offset some concerns, particularly in chipmakers such as Qualcomm, Arm Holdings, and Nvidia, which rose between 0.16% and 1.73% in premarket trading.