* Futures down: Dow 0.42%, S&P 500 0.46%, Nasdaq 0.69%

* Unity Software's ( U ) shares climb after preliminary Q1

results

* Final reading of UMich sentiment survey, Fed speakers

on deck

(Updates before markets open)

By Purvi Agarwal and Twesha Dikshit

March 27 (Reuters) - Wall Street's main indexes were on

track to open lower on Friday as the month-long Middle East

conflict dragged on, weighing on sentiment despite the United

States pushing back another deadline to strike Iran's

energyinfrastructure.

President Donald Trump said on Thursday he would again

extend a deadlineasking Iran to reopen the Strait of Hormuz or

face the destruction of its energy plants, after Tehran earlier

rejected a 15-point U.S. proposal to end the fighting.

The delay, however, did little to calm markets, and oil

prices rose again as investors remained skeptical about the two

sides arriving at an agreement.

"Financial markets remain headline-driven. Investors are

being buffeted by U.S. claims that progress is being made to end

hostilities, while Iran denies that any serious negotiations are

taking place," said David Morrison, senior market analyst at

Trade Nation.

"It seems obvious that neither side is close to accepting

the other's conditions for peace so for now, the war continues."

The S&P 500 and the Nasdaq stayed on track for their fifth

week of losses. The Dow was set for weekly gains.

On Thursday, the S&P 500 and the Dow closed over 1% lower

each, while the Nasdaq ended more than 10% lower from its record

close, confirming it had been in correction territory.

The Russell 2000, the first on the correction path,

confirmed it last Friday.

"The speed of the market's declines in recent weeks and the

fact that most of this fear has been driven by a single

narrative, geopolitical tensions, suggests that the market is in

the midst of a correction, and not a bear market," said Glen

Smith, chief investment officer, GDS Wealth Management

At 08:35 a.m. ET, Dow E-minis lost 196 points, or

0.42%, S&P 500 E-minis were down 30.25 points, or 0.46%,

and Nasdaq 100 E-minis fell 165.25 points, or 0.69%.

The spike in oil prices as a result of the Iran war has

brought inflation fears to the forefront, complicating the

future rate-cut path for central banks.

Money market participants are not pricing in any easing from

the U.S. Federal Reserve this year, compared with two cuts

anticipated before the conflict broke out, according to CME's

FedWatch Group.

Investors will look out for the final reading of the

University of Michigan's sentiment survey for March and examine

commentary from regional Fed Presidents Thomas Barkin, Mary Daly

and Anna Paulson.

In individual movers, Unity Software's ( U ) shares jumped

about 14% in premarket trading after the maker of videogame

software reported first-quarter preliminary revenue above

analysts' estimates.