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* Futures: Dow flat, S&P 500 up 0.05%, Nasdaq up 0.08%

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

on Friday even as investors assessed prospects of de-escalation

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

strikes on Iran's energyinfrastructure.

U.S. 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, failed to calm markets, with oil prices

rising once again and government bonds sliding as investors

remain skeptical of a deal being struck by the two sides.

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

week of losses as the month-long Iran war drags on. 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 over 10% lower from its record

close, confirming it had been in correction territory.

"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 05:33 a.m. ET, Dow E-minis were up 6 points, or

0.01%, S&P 500 E-minis were up 5.5 points, or 0.08% and

Nasdaq 100 E-minis were up 11.5 points, or 0.05%.

The oil price spike resulting from the Iran conflict has

brought inflation fears to the forefront, complicating the

future interest rate cut path of central banks.

Money market participants are not pricing in any easing from

the 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

comments from regional Fed Presidents Thomas Barkin, Mary Daly

and Anna Paulson.

Among individual movers, Unity Software ( U ) shares jumped

about 15% in premarket trading after the video game software

maker reported preliminary revenue for the first quarter above

analysts' estimates.

(Reporting by Purvi Agarwal in Bengaluru; Editing by Saumyadeb

Chakrabarty)