Middle East Tensions Shake Markets as U.S. Stock Futures Dip

U.S. stock index futures stumbled slightly on Tuesday as tensions in the Middle East roiled global investor confidence, coinciding with the Federal Reserve's imminent policy conclave. Iran and Israel's escalating air conflict, ignited by Israel's assault on Iranian nuclear sites, has sparked anxiety, potentially constricting oil exports from the resource-abundant region.

This unease lifted U.S. energy shares during premarket dealings, with stalwarts like Chevron and Exxon experiencing near 1% gains, fueled by the sustained high oil prices. Meanwhile, traders are eyeing the Fed's looming decision on interest rates, with expectations skewing toward a hold, although speculations lean towards potential rate cuts by 2025.

In political developments, Senate Republicans unveiled amendments to President Trump's extensive tax-cut agenda, casting ripples across sectors reliant on renewable tax credits. Solar stocks took a notable hit, while nuclear energy shares experienced buoyancy amid extended credits. Investors sought refuge in U.S. Treasuries amidst geopolitical uncertainty, though advanced talks between Eli Lilly and Verve Therapeutics offered a silver lining on the corporate horizon.

(With inputs from agencies.)