US equity futures were mostly unchanged pre-bell Tuesday as oil prices declined amid optimism that the US-Iran conflict could have a diplomatic resolution after a report that Iran was receptive to reopening the Strait of Hormuz.
Dow Jones Industrial Average futures were 0.3% higher, S&P 500 futures held steady, and Nasdaq futures were flat.
Iran is ready to reopen the Strait of Hormuz within seven days on the condition that the US removes its blockade on Iranian ports and reduces military pressure, Reuters reported on Tuesday, citing a senior Iranian official.
In a move by the US to further increase economic pressure on Iran, US Treasury Secretary Scott Bessent told CNBC that all Iranian airlines will be shut down from Wednesday by denying them services such as refueling.
Traders digested the latest round of earnings, with AutoZone (AZO) posting higher fiscal Q4 net income and net sales.
Oil prices were lower, with front-month global benchmark North Sea Brent crude down 1.9% at $98.39 per barrel and US West Texas Intermediate crude 2.6% lower at $93.30 per barrel.
The Richmond Fed manufacturing index for September is scheduled to be released at 10 am ET.
Federal Reserve New York President John Williams, Fed Vice Chair Philip Jefferson and Richmond Fed President Thomas Barkin are slated to speak on Tuesday.