U.S. stock futures rose on Monday while the dollar and oil prices slipped as the prospect of a deal to end the Iran war buoyed risk appetite, although a lack of clarity over when the Strait of Hormuz would open kept enthusiasm in check.
The nearly three-month war in the Middle East has sent energy prices soaring and rewired global rates outlook due to worries over inflation as Tehran effectively shut down the strait through which much of the world's energy supply passes.
U.S. President Donald Trump said on Sunday he had told his representatives not to rush into any deal with Iran, as his administration played down hopes of an imminent breakthrough.
Just a day earlier, Trump had said that Washington and Iran had 'largely negotiated' a memorandum of understanding on a peace deal that would reopen the waterway.
Oil prices hit two-week lows with Brent crude futures down over 4% to $98.83 a barrel, while U.S. West Texas Intermediate was at $92.03, also down over 4%.
The euro was up 0.37% at $1.1646, while the Japanese yen firmed to 158.85 per dollar as the safe haven dollar gave up some gains.
Nasdaq futures were 0.89% higher and S&P futures were up 0.6%.
Nick Twidale, chief market analyst at ATFX Global, expects more risk appetite on Monday but not a surge until confirmation that the Strait of Hormuz will reopen.
