Market Jitters Amid Middle East Tensions and Rate Inflections

U.S. stock futures tumbled and oil prices climbed on Tuesday, as President Donald Trump's urgent call for evacuation from Tehran due to ongoing Israel-Iran fighting caused market unrest, raising fears of a wider regional conflict.

Investor nerves were frayed after reports indicated Trump had cut short his visit to the Group of Seven summit in Canada to deal with the situation alongside the national security council. As tensions soared, S&P 500 futures dropped 0.46%, and European futures fell 0.69% with crude prices briefly rising over 2%.

The heightened tension drove investors towards secure assets, including gold, which saw a 0.5% increase, and U.S. Treasuries as yields slipped. Meanwhile, central banks' interest rate decisions, particularly the Bank of Japan's upcoming stance amidst expectations of maintained interest rates at 0.5%, dominated investor attentions. Amid a week of crucial bank meetings, traders are eyeing potential rate cuts from the Federal Reserve.

(With inputs from agencies.)