US stock futures fell ahead of Monday's trading as markets reacted to escalating tensions in the Middle East.

Futures tied to the Dow Jones Industrial Average slipped 0.3 percent, while futures for the S&P 500 and Nasdaq 100 dropped 0.26 percent and 0.35 percent, respectively, according to CNBC.

In regional markets, optimism seems to have prevailed. Middle Eastern stocks rose sharply on Sunday, with Israel's TA-35 index climbing 1.5 percent and Egypt's EGX30 surging 2.7 percent. Traders appeared to bet that US airstrikes on Iranian nuclear sites might accelerate a resolution to the ongoing conflict between Israel and Iran, according to Bloomberg.

However, the US strikes have sparked global condemnation and raised fears of broader instability. United Nations Secretary-General Antonio Guterres warned the bombings marked a "perilous turn," stressing that the region cannot endure yet another "cycle of destruction." He called for an "immediate ceasefire" and a return to "serious, sustained negotiations."

China also issued a sharp rebuke, with a foreign ministry spokesperson stating: "China strongly condemns the US attacks on Iran. The actions of the US seriously violate the purposes and principles of the UN Charter and international law, and have exacerbated tensions in the Middle East."

As tensions in the Middle East escalate further, oil markets have surged, with prices hitting their highest levels of 2025. Brent crude futures topped $80 a barrel, while West Texas Intermediate (WTI) rose to $77. The spike reflects heightened concerns about potential disruptions to supply routes in the region.

Joe Brusuelas, chief economist at RSM, told CNN that rising oil prices combined with US trade policies "strongly suggest inflation (in the US) will be moving faster and higher over the next 90 days."