Stock futures pointed lower on Sunday as investors weighed the impact of the escalating Israel-Iran conflict that shows no signs of any potential off-ramps ahead. Oil prices jumped after Israel attack key areas of Iran’s energy infrastructure over the weekend,

Money market moves show traders are pricing in about 48 basis points of rate cuts by the end of 2025, with a 55% chance of a 25-bps rate cut in September, according to CME Group's Fedwatch tool.

While Wall Street futures signal a tentative recovery, markets remain hostage to geopolitical developments in the Middle East. Any fresh escalation — particularly around energy supply routes like the Strait of Hormuz — could reignite volatility and keep global investors on edge throughout the week.

Some calm is returning to Wall Street, and U.S. stocks are rising on Monday, while oil prices are giving back some of their initial spurts following Israel’s attack on Iranian nuclear and military targets at the end of last week.