07:18 AM EDT, 06/16/2025 (MT Newswires) -- The benchmark US stock measures were pointing higher before the opening bell Monday as investors watch the ongoing conflict between Israel and Iran, while preparing for a key policy decision by the Federal Reserve later in the holiday-shortened week.

The S&P 500 and the Dow Jones Industrial Average rose 0.4% each in premarket activity, while the Nasdaq added 0.5%. The indexes finished Friday's trading session in the red.

US markets will be closed on Thursday for the Juneteenth National Independence Day holiday.

Tensions in the Middle East continued after Israel launched airstrikes across Iran, which responded with its own retaliatory measures. West Texas Intermediate crude oil declined 1.5% to $71.92 a barrel before Monday's open, while Brent was down 1.2% to $73.29.

ING Bank said last week that an escalation in the conflict that leads to a loss of Iranian oil flows could drive prices toward $80 a barrel, potentially reaching $120 if shipping through the Strait of Hormuz is also impacted. Prices jumped to more than $77 a barrel for WTI last week.

In a Sunday post on Truth Social, US President Donald Trump urged both Iran and Israel to make a deal to end the conflict.

Treasury yields were slightly higher premarket, with the two-year rate rising 0.4 basis point to 3.96% and the 10-year rate inching up 0.2 point to 4.43%.

The Fed's monetary policy committee will meet Tuesday, with a decision on interest rates due Wednesday. Markets are widely expecting the central bank to hold the benchmark lending rate steady, according to the CME FedWatch tool.

Investors will also keep an eye on commentary from Fed Chair Jerome Powell regarding the outlook for the economy amid trade and geopolitical uncertainties. Trump has repeatedly called for the Fed to cut rates.

"The Federal Reserve can be patient and wait to see how the impact of tariffs affect inflation and the labor market this summer before adjusting its guidance on the path of interest rates," Oxford Economics Chief US Economist Ryan Sweet said in a Friday note. "The news on inflation is encouraging, but some of the disinflationary forces that contributed to inflation's small gains are fading."

Last week, government data showed that US consumer inflation unexpectedly decelerated last month, weighed down by lower energy prices, while a separate report showed that producer prices rebounded less than anticipated.

Monday's thin economic calendar has the Empire State manufacturing index for June at 8:30 am ET. Homebuilder Lennar ( LEN ) is scheduled to release financial results after the markets close.

Gold decreased 0.4% to $3,434 per troy ounce, while bitcoin inclined 1.4% to $106,827.