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.

Markets are concerned about Iran's frequent threats to blockade the Strait of Hormuz, just as the US heads into peak summer demand season.

U.S. stock index futures edged higher on Monday as easing oil prices helped calm sentiment despite ongoing attacks between Iran and Israel and increased focus on the upcoming Federal Reserve meeting.

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 looked set for losses on Thursday after President Donald Trump said he would set unilateral tariff rates within the next week or two, stoking fears about trade tensions after a spell of relative calm.

U.S. stock index futures dropped on Friday after Israel's military strike on Iran's nuclear facilities escalated tensions in the oil-rich Middle East and battered risk sentiment across global markets.

Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, traded little changed ahead of Tuesday's open. The stock market rallied Monday as Wall Street reacted bullishly to reports that Iran is looking to ramp down hostilities with Israel.

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.