#IsraelIranConflict *Despite ongoing attacks between Israel and Iran, a decline in oil prices helped support market sentiment, and U.S. stock index futures rose on Monday as investors turned their focus to the upcoming Federal Reserve meeting.*
*On Friday, mutual airstrikes between Israel and Iran caused oil prices to surge by 7%, heightening investor fears that the conflict could severely disrupt oil exports from the Middle East. Wall Street indexes dropped more than 1%.*
*Leaders of the Group of Seven began their annual summit on Monday. The escalating risk of further conflict between Israel and Iran cast a shadow over the talks. U.S. President Donald Trump said on Sunday that he hoped for a deal, but the war had entered its fourth day with no sign of de-escalation.*
*Crude oil prices have retreated from their January highs, as the renewed military strikes over the weekend did not impact oil production or export facilities. This provided some relief to investors concerned about a potential resurgence in inflation.*
*"The strikes are ongoing, but the oil market and shipping routes do not appear to be disrupted. The market is simply calming down a bit after Friday’s surprise events," said David Miller, Chief Investment Officer at Catalyst Funds.*
*The spike in oil prices occurred ahead of the Federal Reserve's monetary policy decision set to be announced on Wednesday. The market broadly expects the Fed to keep interest rates unchanged.*
*Investors will closely watch comments from Fed Chair Jerome Powell, along with the central bank's updated projections on monetary policy and the economy, in search of clues about potential rate cuts later this year.*
*According to the CME Group's FedWatch tool, money market movements suggest traders expect about 47 basis points in rate cuts by the end of 2025, with a 56% probability of a 25-basis-point cut in September.*
*Key data releases this week include monthly retail sales, import prices, and weekly jobless claims.*