Fed Meeting Awaits as Oil Prices Ease Amid Middle East Tensions

U.S. stock index futures saw an uptick on Monday, thanks to a slight dip in oil prices that helped soothe investor anxiety despite the ongoing escalation between Iran and Israel. Attention now shifts to the upcoming Federal Reserve meeting, where policymakers are expected to hold interest rates steady.

Friday witnessed a more than 1% decline in Wall Street indexes as oil prices surged by 7% after airstrikes between Iran and Israel, stoking fears of potential disruptions in Middle Eastern oil exports. President Trump expressed optimism over resolving conflicts, but tensions persist amid the Group of Seven leaders' meeting in Canada.

Though crude prices retracted slightly, investors remain cautious about inflation risks ahead of the Fed's policy announcement. All eyes will be on Fed Chair Jerome Powell and the central bank's projections, with markets pricing possible rate cuts by end of 2025. Meanwhile, Sarepta Therapeutics shares plunged following adverse therapy news, while U.S. Steel stocks gained after an acquisition approval.

(With inputs from agencies.)