Futures on US stock indices came under pressure again in the Asian session — the aftershocks from Wall Street's sell-off and a fresh wave of US-Iran tensions pushed oil higher and rekindled inflation fears.

By 09:00 EST, the picture looked like this: S&P 500 futures down 0.4% at 7,738.25, Nasdaq-100 futures down 0.8% at 29,871.75, Dow futures down 0.1% at 53,467.0. The previous close on Wall Street was also soft: the Dow fell 0.5%, the S&P 500 lost 0.5%, and the Nasdaq Composite dropped 0.3%.

The energy sector was the only winner today, rising 0.9% as oil climbed more than $2 a barrel — a logical move since higher oil prices boost energy companies' profits and lift their shares.

Most other sectors were in the red, with telecoms and consumer staples hit especially hard — they are sensitive to an overall slowdown and to the prospect of consumers tightening their belts.

The oil market was again in the spotlight: Brent surpassed the psychological $91-per-barrel level. The price rise is stoking investor anxiety because the move appears driven more by geopolitical escalation than by market fundamentals.

Tensions were further inflamed by a comment from Donald Trump: he threatened military action against Oman if it obstructs US efforts to deal with Iran. That raises more questions about the Strait of Hormuz — a key route for global oil flows — and Iranian media also reported the seizure of a UAE-owned tanker. Taken together, these events could push energy prices even higher.

A rally in oil prices has a domino effect: fuel gets more expensive, business and household costs rise, and that feeds inflation. Investors are now pricing in the risk of accelerating inflation, which weighs on asset prices.

Meanwhile, US Treasury yields climbed: 30-year yields closed at 5.31% — a near-two-decade high. Higher yields make bonds more competitive versus stocks and increase borrowing costs for companies and consumers, which is not the best backdrop for market optimism.

There are key triggers on the horizon the market will watch. First, a busy week of retail earnings from Walmart, Home Depot, and Target, which will reveal how resilient the American consumer is after weak July retail and employment data. Disappointing retailer results would add to concerns.

Second, the Fed minutes are due Wednesday — everyone will be searching for clues about internal debate over the next steps on the funds rate. Recall that in late July, the Federal Reserve left the policy rate at 3.50%–3.75%, but the vote was not unanimous — three members wanted a hike.

So the situation is this: geopolitics is heating oil, oil is lifting inflation expectations and yields, and that is now affecting stocks and the economic outlook. We'll be watching the retailers and the Fed minutes — they could set the next market tone. Besides, if tensions in the Persian Gulf continue to simmer, volatility is likely to remain with us for some time.