Wall Street index futures are trading lower ahead of the open, reflecting growing caution among investors.
The pullback is driven by a sharp rise in crude oil prices following an escalation of geopolitical tensions in the Middle East.
Market participants are also positioning ahead of key earnings reports from major technology companies later in the week.
The rise in energy costs adds a layer of complexity to the current market environment.
Higher oil prices can weigh on consumer spending and corporate margins, potentially complicating the outlook for inflation and monetary policy.
Traders are closely monitoring the situation to assess the duration and magnitude of the supply-side risk.