* Futures down: Dow 0.33%, S&P 500 0.33%, Nasdaq 0.47%

* US health insurers jump after Medicare Advantage

payment hike

* Broadcom ( AVGO ) rises on deal to develop Google's AI chips

(Updates prices, adds analyst comment)

By Purvi Agarwal and Avinash P

April 7 (Reuters) - U.S. stock index futures ticked

lower on Tuesday as investors assessed comments that indicated

the Middle East conflict could escalate, ahead of President

Donald Trump's deadline for Iran to reopen the Strait of Hormuz.

A report said Iran's Kharg Island, a hub of its oil exports,

was targeted with several strikes, while Iran's Revolutionary

Guards warned neighboring countries of strikes on infrastructure

of the U.S. and its allies that could disrupt energy supplies

for years.

The comments come ahead of Trump's Tuesday deadline to

reopen the Strait of Hormuz, which Tehran refused. A senior

Iranian source told Reuters that talks on lasting peace could

begin only after an end to the strikes.

"Either there is a climbdown on the part of Washington or

Tehran, which could prompt a major rally in equities and easing

of energy prices, or a major escalation with all the

implications that might have for financial markets," said Dan

Coatsworth, head of markets at AJ Bell.

Global markets have been battered by the conflict that is

now in its second month, with investors stuck between comments

suggesting an escalation and reports indicating negotiations to

end the war.

At 7:17 a.m. ET, Dow E-minis were down 156 points,

or 0.33%, S&P 500 E-minis were down 22.25 points, or

0.33% and Nasdaq 100 E-minis were down 114.5 points, or

0.47%.

Meanwhile, the U.S. said on Monday it would raise payments

to private insurers offering Medicare Advantage plans to older

adults in 2027 by 2.48% on average, an increase from the

near-flat change proposed earlier.

Shares of health insurers surged in premarket trading, with

UnitedHealth ( UNH ) up 6%, Humana gaining 9.6% and CVS

Health ( CVS ) adding 7%.

Wall Street's main indexes closed higher on Monday, marking

the fourth consecutive session of gains for the S&P 500 and the

Nasdaq, as investors digested the Middle East developments and

positioned for the upcoming quarterly earnings season.

The S&P 500 has lost more than 4% since the conflict in the

Middle East erupted, just after the index was finding its

footing following a selloff, especially in private credit and

software firms, on fears of AI-driven disruption.

On Monday, UBS Global Wealth Management trimmed its S&P 500

end-2026 target to 7,500 from 7,700.

This week, markets will scrutinize some inflation readings

to see if the elevated crude prices stemming from the conflict

have impacted price pressures in the economy.

The Iran war has complicated the interest rate outlook for

the Federal Reserve as it grapples with fears of revived

inflation against the backdrop of a resilient labor market.

Comments from Fed policymakers Austan Goolsbee, Philip

Jefferson and Mary Daly will be parsed through the day for clues

on the future policy path.

Among other premarket movers, Broadcom ( AVGO ) shares

gained 3.4% after the chipmaker signed a long-term deal with

Alphabet's Google to develop its AI chips and other

components.