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Asian stock markets : https://tmsnrt.rs/2zpUAr4

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Oil up 2%, but off early highs, after US strikes Iran

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Wall St futures dip, waiting to see how Iran reacts

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Dollar edges up, no broad rush to safety as yet

By Wayne Cole

SYDNEY, June 23 (Reuters) - Wall Street share futures

slipped on Monday and oil prices briefly hit five-month highs as

investors anxiously waited to see if Iran would retaliate to

U.S. attacks on its nuclear sites, with resulting risks to

global activity and inflation.

Early moves were contained, with the dollar getting only a

minor safe-haven bid and no sign of panic selling across

markets. Oil prices were up around 2%, but already well off

their initial peaks.

Optimists were hoping Iran might back down now its nuclear

ambitions had been curtailed, or even that regime change might

bring a less hostile government to power there.

Analysts at JPMorgan, however, cautioned that past episodes

of regime change in the region typically resulted in oil prices

spiking by as much as 76% and averaging a 30% rise over time.

Key will be access through the Strait of Hormuz, which is

only about 33 km (21 miles) wide at its narrowest point and sees

around 20% of the world's daily oil consumption.

"With the U.S. becoming involved, the risk of Iran

retaliating by disrupting the flows of oil from the Middle East

has risen significantly," warned analysts at ANZ. "Prices in the

$90-95/bbl range would be the likely outcome."

For now, Brent was up a relatively restrained 1.9%

at $78.46 a barrel, while U.S. crude rose 2% to $75.30.

Elsewhere in commodity markets, gold edged up 0.2% to $3,375

an ounce.

Share markets were proving resilient so far, with S&P 500

futures off 0.3% and Nasdaq futures down 0.5%,

having both started with losses near 1%.

Nikkei futures were just a fraction lower at 38,380,

pointing to a small opening fall for the cash index.

The dollar edged up 0.2% on the Japanese yen to 146.36 yen

, while the euro dipped 0.3% to $1.1485. The

dollar index firmed 0.25% to 99.008.

There was also no sign of a rush to the traditional safety

of Treasuries, with futures up only 1 tick.

Futures for Federal Reserve interest rates were a

tick lower, likely reflecting concerns a sustained rise in oil

prices would add to inflationary pressures at a time when

tariffs were just being felt in U.S. prices.

Markets are still pricing a slim chance the Fed will cut at

its next meeting on July 30, even after Fed Governor Christopher

Waller broke ranks and argued for a July easing.

Most other Fed members, including Chair Jerome Powell, have

been more cautious on policy leading markets to wager a cut is

far more likely in September.

At least 15 Fed officials are speaking this week, and Powell

faces two days of questions from lawmakers, which is certain to

cover the potential impact of President Donald Trump's tariffs

and the attack on Iran.

The Middle East will be high on the agenda at a NATO leaders

meeting at the Hague this week, where most members have agreed

to commit to a sharp rise in defence spending.

Among the economic data due are figures on U.S. core

inflation and weekly jobless claims, along with early readings

on June factory activity from across the globe.