US stock futures rose early Monday as investors monitored a fragile ceasefire between the US and Iran. Tensions in the Gulf remained elevated following clashes in the Strait of Hormuz and missile attacks targeting the United Arab Emirates, though the diplomatic breakthrough appeared to be holding.

The Strait of Hormuz handles roughly one-fifth of global oil shipments, making any escalation in the region a direct risk to energy markets and broader equities. Traders were also preparing for a busy week of corporate earnings, with AMD results among the closely watched reports due out.

A sustained ceasefire would remove a significant source of uncertainty that has weighed on investor sentiment in recent weeks. Market participants will be closely tracking both geopolitical developments and corporate results to gauge the near-term direction of equity markets.