Stock futures were up Monday after the U.S. military announced a ninth consecutive night of attacks late Sunday, pushing oil prices higher.
International and U.S. oil prices rose to their highest levels since early June, with Brent crude futures briefly topping $90 a barrel.
"The conflict has intensified markedly, with a fresh wave of tit-for-tat attacks underscoring how quickly the situation is deteriorating," Deutsche Bank said. "Prospects for any diplomatic breakthrough remain dim."
U.S. gasoline prices climbed back to $4 a gallon on Monday as the Iran war continued to squeeze global oil supplies and push up energy costs.
"Elevated energy costs could reinforce the expectations that the Federal Reserve could raise interest rates," Hola Prime said. Despite weaker-than-expected inflation figures published last week, the Fed is still expected to increase rates before year-end.
