US stock futures fell with investors on edge as Israel and Iran continued to trade strikes against a backdrop of shifting US trade policy and stubborn interest rates.

Futures on Wall Street have declined on Tuesday morning Indian time after an uneasily positive session to start the truncated week. The Dow futures are currently down 165 points, while the S&P 500 and Nasdaq futures are down 30 and 110 points respectively.

U.S. stock index futures edged higher on Monday as easing oil prices helped calm sentiment despite ongoing attacks between Iran and Israel and increased focus on the upcoming Federal Reserve meeting.

While Wall Street futures signal a tentative recovery, markets remain hostage to geopolitical developments in the Middle East. Any fresh escalation — particularly around energy supply routes like the Strait of Hormuz — could reignite volatility and keep global investors on edge throughout the week.

U.S. stock futures point higher, Victoria's Secret shares rise on a report that an activist investor is building a stake in the lingerie company, and EchoStar stock jumps on a report that President Donald Trump met with officials about the firm's spectrum licenses.

U.S. oil prices jumped 2% to $74.50 per barrel, and Brent crude also shot up 2% to $75.77. That’s after oil soared 7% on Friday as markets reacted to the early stages of the Israel-Iran conflict.

U.S. stocks looked set for losses on Thursday after President Donald Trump said he would set unilateral tariff rates within the next week or two, stoking fears about trade tensions after a spell of relative calm.

Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, traded little changed ahead of Tuesday's open. The stock market rallied Monday as Wall Street reacted bullishly to reports that Iran is looking to ramp down hostilities with Israel.