SINGAPORE, May 25 (Reuters) - U.S. stock futures rose on Monday while the dollar and oil prices slipped as the prospect of a deal to end the Iran war buoyed risk appetite although a lack of clarity over when the Strait of Hormuz would open kept enthusiasm in check. 

The nearly three month war in the Middle East has sent energy prices soaring and rewired global rates outlook due to worries over inflation as Tehran effectively shut down the strait through which much of the world's energy supply passes.  

U.S. President Donald Trump said on Sunday he had told his representatives not to rush into any deal with Iran, as his administration played down hopes of an imminent breakthrough. 

Just a day earlier, Trump had said that Washington and Iran had "largely negotiated" a memorandum of understanding on a peace deal that would reopen the waterway, which before the conflict carried one-fifth of global oil and liquefied natural gas shipments.

Oil prices hit two-week lows to kickstart the week with Brent crude futures down over 4% to $98.83 a barrel, while U.S. West Texas Intermediate CLc1 was at $92.03 a barrel, also down over 4%. [O/R]

The euro was up 0.37% at $1.1646, while the Japanese yen firmed to 158.85 per U.S. dollar in early trading as the safe haven dollar gave up some of its recent gains. 

Nasdaq futures were 0.89% higher and S&P futures were up 0.6%. 

Nick Twidale, chief market analyst at ATFX Global, expects the market to embrace more risk on Monday but not to surge higher until there is confirmation that the Strait of Hormuz will reopen. 

"We will need to see an agreement out in place in the coming sessions as we know there are still some major sticking points," he said.

Japan's Nikkei was poised for a strong start to Monday's session. 

The most important issues for financial markets are when the Strait of Hormuz will re-open,  Commonwealth Bank of Australia strategists said in a note.

"Under what conditions the Strait will re-open and how long it will take to repair production facilities and infrastructure to ramp up production of energy and other goods to pre-war levels," they said.