US stock futures traded mixed on Tuesday as investors weighed renewed geopolitical tensions between the United States and Iran, key inflation data, and the start of the second-quarter earnings season. President Donald Trump announced the reinstatement of a US naval blockade targeting Iran and proposed a 20% protection fee on commercial ships transiting the Strait of Hormuz, a critical energy shipping route. The US military carried out a third consecutive night of strikes against Iranian targets, citing threats to commercial shipping.
Oil prices climbed sharply, with Brent crude reaching $86.36 a barrel, its highest level since mid-June. US benchmark crude rose 1.4% to $79.20 a barrel. The escalation in the Middle East disrupted oil tanker traffic, driving up global fuel prices. Asian shares declined, led by losses in artificial-intelligence stocks, with Tokyo's Nikkei 225 losing 1% and South Korea's Kospi dropping 3.2%.
Investors also awaited the Consumer Price Index (CPI) report and testimony from Federal Reserve Chair Kevin Warsh, which could influence expectations for interest rate hikes. Federal Reserve Governor Christopher Waller warned that the Fed may need to raise rates if inflation continues to rise. Markets currently see around a 40% chance of a 25 basis point rate hike at the Fed's July 28-29 meeting.
Technology shares remained in focus following recent volatility in the AI sector. Nvidia tightened access to its AI chips amid US export restrictions reshaping the global semiconductor industry. Major US banks, including JPMorgan and Goldman Sachs, were set to release second-quarter earnings, with analysts expecting strong results.
European shares opened lower, with the pan-European STOXX 600 index slipping 0.7%. Travel and leisure stocks were particularly affected, down 2.4%. The combination of geopolitical risks, economic data, and central bank commentary is expected to shape market momentum in the coming days.