U.S. stock futures were largely flat Sunday night as investors assessed renewed geopolitical risks surrounding the Strait of Hormuz, with Iran setting conditions for fully reopening the critical oil shipping route.
S&P 500 futures slipped about 0.1% to 7,775.50 points, while Nasdaq 100 futures were nearly unchanged at 29,837.75. Dow Jones futures also fell 0.1% to 54,076.0 points by 21:24 ET (01:24 GMT).
Iranian Foreign Minister Abbas Araqchi said an agreement with Oman to establish new shipping lanes through the Strait of Hormuz was nearing completion. However, he stressed that the deal alone would not result in the full reopening of the waterway.
Tehran is seeking several concessions from Washington, including U.S. compensation, the removal of sanctions, an end to military threats and the lifting of a naval blockade. The demands have reduced optimism that normal shipping activity through one of the world's most important oil chokepoints will resume quickly.
Meanwhile, Reuters reported, citing a U.S. official, that Washington expects an Iran-Oman agreement soon. The U.S. could lift its blockade of Iranian ports once commercial vessels are able to travel through the region without obstruction.
Oil prices extended gains during Asian trading on Monday as uncertainty over supplies persisted. Sustained increases in crude oil prices could intensify U.S. inflation pressures and make the Federal Reserve's interest rate outlook more complicated.
Wall Street enters the new week following strong gains. On Friday, the Dow Jones Industrial Average rose 0.3%, while the S&P 500 climbed 0.6% to a record close. The Nasdaq Composite jumped 1.3%.
Stocks benefited after U.S. employment data showed the economy lost 23,000 jobs in July, compared with expectations for an 80,000 increase. The weak jobs report eased expectations for an imminent Federal Reserve rate hike and pushed Treasury yields lower.
For the week, the S&P 500 gained 3.6%, the Nasdaq surged 5.2% and the Dow advanced 3%.
Investors will now focus on July U.S. consumer inflation data due Wednesday, along with earnings reports from Applied Materials, Cisco Systems and CoreWeave. Nearly 90% of S&P 500 companies have already reported quarterly results, with 76% exceeding earnings expectations.


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