* Futures down: Dow 0.41%, S&P 500 0.44%, Nasdaq 0.65%

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

results

* Final reading of UMich sentiment survey, Fed speakers

on deck

(Updates with prices, analyst comment)

By Purvi Agarwal and Twesha Dikshit

March 27 (Reuters) - U.S. stock index futures edged

lower on Friday as investors assessed prospects of de-escalation

in the Middle East after another postponed deadline for U.S.

strikes on Iran's energyinfrastructure.

President Donald Trump said on Thursday he would again

extend a deadline for 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, with oil

prices rising again as investors remained skeptical of the two

sides striking a deal.

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

week of losses as the month-long Iran war dragged on. The Dow

was set for weekly gains.

On Thursday, the S&P 500 and the Dow closed more than 1%

lower each, while the Nasdaq ended over 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.

"Words alone aren't cutting it right now, with President

Trump's extension of the pause on Iran energy strikes failing to

lift the mood in any meaningful way. Tangible evidence of

progress is what's needed," said Matt Britzman, senior equity

analyst, Hargreaves Lansdown.

At 06:57 a.m. ET, Dow E-minis fell 190 points, or

0.41%, S&P 500 E-minis lost 29 points, or 0.44%, and

Nasdaq 100 E-minis were down 154 points, or 0.65%.

The spike in oil prices resulting from the Iran conflict 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 war 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 12.3% in premarket trading after the maker of videogame

software reported first-quarter preliminary revenue above

analysts' estimates.