07:32 AM EDT, 03/24/2026 (MT Newswires) -- US equity futures retreated on Tuesday and oil prices rose as optimism over a potential easing of the Middle East conflict faded after Iran denied it was in talks with the US.

The S&P 500 and the Dow Jones Industrial Average edged down 0.1% each in premarket activity, while the Nasdaq was slightly in the red. The indexes closed the previous trading session higher, snapping a three-day losing streak.

West Texas Intermediate crude oil advanced 2.1% to $89.97 a barrel before the opening bell, while Brent increased 1.1% to $101.01. Oil prices fell sharply on Monday after President Donald Trump said in a social media post that the US will not attack Iran's energy infrastructure for five days amid ongoing talks between the two countries.

However, Iran's foreign ministry denied that Tehran was in talks with Washington, several publications reported, citing Iranian state media. Trump had previously threatened to "hit and obliterate" Iran's power plants if Tehran didn't fully open the crucial Strait of Hormuz.

"A potential de-escalation in the Middle East adds a new layer to the outlook," Saxo Bank said in a report Monday. "The sharp rebound in equities on easing headlines highlights how sensitive markets remain to oil-driven inflation expectations; however, conflicting signals suggest any relief may remain headline-driven rather than durable."

The US-Israel war with Iran, which started at the end of last month, has impacted several countries in the Middle East and resulted in the closure of the Strait of Hormuz.

Treasury yields were up in premarket action, with the two-year rate rising 6.2 basis points to 3.89% and the 10-year rate gaining 4.2 basis points to 4.38%.

Shares of Estee Lauder ( EL ) rebounded 0.7% pre-bell after closing the previous trading session down 7.7%, as the company confirmed it's in talks with Spanish beauty and fashion group Puig regarding a potential merger. Gilead Sciences ( GILD ) ticked down 0.2% as the firm agreed to purchase autoimmune disease therapy developer Ouro Medicines for up to about $2.18 billion.

Tuesday's economic calendar has the S&P Global's (SPGI) flash purchasing managers' index for March at 9:45 am ET, followed by the Federal Reserve Bank of Richmond's manufacturing index for the same month at 10 am. Federal Reserve Governor Michael Barr is scheduled to speak at 6:30 pm.

Chicago Fed President Austan Goolsbee said Monday he's "fairly optimistic" that interest rates could go down by the end of this year, CNBC reported. "But I wanted to see proof that we're back on an inflation headed to 2%," Goolsbee reportedly said. "This [war] definitely throws a wrench into the plans. We do need to see progress."

Core & Main ( CNM ) is slated to report its latest financial results before the bell, while GameStop ( GME ) , AAR (AIR) and KB Home ( KBH ) post earnings after the markets close.

Gold inclined 0.4% to $4,424 per troy ounce, while bitcoin grew 0.4% to $71,165.