US Stock Futures Drop on Oil Rally Amid Iran Ceasefire Stall

U.S. stock futures declined in premarket trading on Tuesday as surging oil prices, driven by stalled ceasefire talks between the United States and Iran, dampened investor sentiment ahead of key inflation data.

Futures tied to the S&P 500 fell 0.4 percent, Nasdaq 100 futures dropped as much as 0.9 percent, and Dow Jones Industrial Average futures slipped about 0.1 percent. The pullback followed record closing highs for major indexes on Monday, fueled by strong corporate earnings and optimism around artificial intelligence developments.

Oil prices jumped more than 3 percent, with West Texas Intermediate crude rising above $101 per barrel and Brent crude topping $107. The increase stemmed from President Donald Trump's criticism of Iran's latest counterproposal to a U.S. peace offer. Trump described the ceasefire as "unbelievably weak" and on "massive life support," telling reporters it followed a "garbage" response from Tehran. Iran's demands reportedly included war reparations, release of frozen assets, full sovereignty over the Strait of Hormuz, and lifting of sanctions. The strait remains effectively closed, paralyzing shipping and contributing to elevated energy costs.