US stock futures fell with investors on edge as Israel and Iran continued to trade strikes against a backdrop of shifting US trade policy and stubborn interest rates.

The sharp pullback came as global investors reacted to headlines of escalating military conflict in the Middle East, with Israel and Iran trading lethal missile barrages. US crude climbed 1.21% to $72.64 per barrel, extending gains from last week as markets priced in potential disruptions to energy supply chains.

The Dow Jones dropped Tuesday as Trump left the G7 summit to deal with the Israel-Iran conflict. Circle stock surged.

U.S. futures for the S&P 500 were down 0.6% and futures for the Dow Jones Industrial Average declined 0.7%. Changes in futures do not necessarily predict movements after the opening bell.

U.S. stocks appear set for a positive opening on Monday as the ongoing Israel-Iran conflict spared crude oil capacity over the weekend, resulting in oil prices simmering down. Crude oil prices surged by nearly 13% on Friday as Israel and Iran broadened their strikes.

At the time of writing, S&P 500 futures are down 0.6% slightly below the psychological level of 6,000. Down futures ease over 240 points, and slides to near 42,720.

U.S. stock futures have already pared about half of their overnight drop as some of the initial reaction seen across global markets has started to unwind. Oil prices have come off their highs after spiking 14%.

U.S. stocks appear set for a negative opening on Thursday after President Donald Trump threatened to impose unilateral tariffs again on Wednesday. During an interaction with the press at the John F. Kennedy Center for the Performing Arts,