(For a Reuters live blog on U.S., UK and European stock

markets, click or type LIVE/ in a news window.)

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Futures down: Dow 0.23%, S&P 500 0.17%, Nasdaq 0.21%

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Estee Lauder ( EL ) rises after brokerage upgrade

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Tesla up on robotaxi launch in Texas

(Updates with prices)

By Kanchana Chakravarty and Nikhil Sharma

June 23 (Reuters) -

U.S. stock futures fell on Monday as Tehran vowed

retaliation for American

airstrikes

on its nuclear facilities over the weekend, sparking fears

of a broader conflict in the Middle East.

Tehran warned that the U.S. attack had expanded the scope of

its military action.

Oil prices jumped in a volatile session amid rising concerns

around Iran shutting the Strait of Hormuz, a key oil supply

route. Brent futures were up 1.2% at $77.91 a barrel as

of 07:22 a.m. ET.

Energy stocks rose in premarket trading, tracking a surge in

crude prices. Shares of energy majors Chevron ( CVX ) rose 1.5%

and Exxon gained 1.9%.

Defense stocks also rose, with Lockheed Martin ( LMT ) up

0.5% and RTX Corporation ( RTX ) gaining 1.1%.

"There is tension but not trauma as investors monitor

developments in the Middle East," Richard Hunter, head of

markets at Interactive Investor, said in a note.

As markets grapple with existing price pressures from

President Donald Trump's tariffs, the oil price volatility added

a new layer of inflation concerns as the 90-day suspension for

U.S. tariffs nears.

At 07:43 a.m. ET, Dow E-minis were down 98 points,

or 0.23%, S&P 500 E-minis were down 10.25 points, or

0.17%, and Nasdaq 100 E-minis were down 45.75 points, or

0.21%

Among other movers, Tesla rose 0.5% after the

EV-maker deployed 10 self-driving taxis in Texas, marking the

first time Tesla cars without human drivers carried paying

riders.

Shares of U.S. carriers were mostly down, with Delta Air

Lines ( DAL ) falling 1.1%, and American Airlines ( AAL ) losing

1.3%

Shares of Estée Lauder added 2.3% in premarket after

Brokerage Deutsche Bank upgraded the cosmetic giant to "buy"

from "hold".

Following a strong rally in equities last month that pushed

indexes close to their record levels, investor momentum was

bruised by rising geopolitical tensions.

The benchmark S&P 500 index remains about 3% below

its record level.

Among major economic indicators, attention will be on U.S.

core PCE data and final GDP reading, set to be released later in

the week.

Investors will also closely watch U.S. Federal Reserve

Chair Jerome Powell's two-day semiannual testimony before

Congress, as lawmakers are expected to question the top

policymaker on a range of topics, including interest rates and

tariffs.

This comes after the central bank kept interest rates

unchanged in its June

monetary policy meeting

but flagged inflationary risks due to higher trade duties.

In earnings, investors were awaiting fourth-quarter

results from sportswear giant Nike ( NKE ) and parcel delivery

giant FedEx ( FDX ), both scheduled to be released later in the

week.

Preliminary June PMI data is due at 09:45 a.m. ET and

existing home sales data for May is scheduled for release at

10:00 a.m. ET.

Fed Board Governor Christopher Waller, Fed Chicago

President Austan Goolsbee and Fed San Francisco President Mary

Daly are slated to speak later in the day.