US stock futures fall as oil prices surge over fears of Iran war restarting

US stock futures fell on Tuesday as rising oil prices and renewed concerns over the Iran conflict weighed on investor sentiment ahead of key inflation data.

Futures linked to the S&P 500 fell 0.4 percent, while Nasdaq 100 futures dropped 0.9 percent. Dow Jones Industrial Average futures were also slightly lower.

Oil prices surged after US President Donald Trump described the ceasefire with Iran as “unbelievably weak” and said it was “on massive life support” following Tehran’s latest counterproposal.

West Texas Intermediate crude rose more than 3 percent to above $101 per barrel, while Brent crude climbed past $107.

Iran’s latest proposal reportedly included demands for war reparations, the release of frozen assets, full sovereignty over the Strait of Hormuz and the lifting of sanctions.

Investors were also focused on the release of April’s US consumer price index data. Economists surveyed by Dow Jones expected annual inflation to rise by 3.7 percent.

The latest figures later showed inflation increased by 3.8 percent year-on-year, while core inflation excluding food and energy reached 2.8 per cent.

Despite Tuesday’s decline in futures trading, Wall Street recently reached fresh record highs following strong corporate earnings and continued investor confidence in the US economy.