US stock futures edged lower while crude oil prices climbed on Monday as geopolitical tensions intensified between Washington and Tehran. The renewed threat from President Donald Trump to strike Iran clouded ongoing diplomatic negotiations, creating uncertainty across global markets. Energy traders bid up oil futures amid concerns over potential supply disruptions in the Middle East.

The pound slipped against major currencies as speculation mounted over Keir Starmer's political future and his position as UK prime minister. Currency markets reacted to reports questioning the stability of Britain's government, adding to the day's risk-off sentiment that favored safe-haven assets.

Market participants digested the dual pressures of Middle East tensions and European political uncertainty during morning trading. The developments underscore how geopolitical flashpoints continue to influence investor behavior, particularly in energy and currency markets where supply concerns and political stability directly impact pricing.

Risk assets faced pressure as investors positioned for potential volatility, with defense stocks attracting attention while travel and consumer discretionary sectors lagged. The day's movements reflect markets' ongoing sensitivity to geopolitical developments that could reshape trade relationships and energy flows.