US Stock Futures Rise as Fears of Wider Iran Conflict Ease; Oil Rebounds

US stock-index futures rose after reports indicated the US and Iran may avoid a broader military conflict and return to negotiations.

Bloomberg reported on June 28 that S&P 500 futures advanced in early Asian trading, while the dollar was little changed against major peers. Brent crude rose as much as 1.9% before paring some of its gains.

Axios earlier reported that the US and Iran agreed to halt attacks on each other and resume talks in Qatar this week on the Strait of Hormuz and other issues.

The two sides had recently intensified tensions with retaliatory strikes despite a ceasefire agreement. Iran attacked container ships, tankers carrying Qatari crude and military bases in Kuwait and Bahrain. The US, in response, was reported to have struck Iranian military facilities several times.

Easing concerns over a broader Middle East conflict have helped restore some appetite for risk assets. Optimism over artificial intelligence-related technology stocks has also put global equities on track for their best quarterly performance since 2020.

Still, investors are watching several risks, including the durability of the AI investment boom, the possibility of higher US interest rates and rising fiscal strain from expanded government spending.

The Bank for International Settlements said in its annual report on June 28 that AI-driven asset-price corrections, inflation and fiscal stress are among the main risks facing the global economy.

Attention this week will turn to the annual central-bank forum in Sintra, Portugal, and US employment data. Strong readings, especially in nonfarm payrolls, could revive expectations for additional interest-rate increases by the Federal Reserve.