U.S. stock index futures edged lower on Tuesday as conflict in the Middle East entered its fifth day, dampening global investor confidence ahead of the Federal Reserve's upcoming policy meeting.

U.S. futures for the S&P 500 were down 0.6% and futures for the Dow Jones Industrial Average declined 0.7%. Changes in futures do not necessarily predict movements after the opening bell.

U.S. stocks appear set for a positive opening on Monday as the ongoing Israel-Iran conflict spared crude oil capacity over the weekend, resulting in oil prices simmering down. Crude oil prices surged by nearly 13% on Friday as Israel and Iran broadened their strikes.

Stock futures fell sharply early Thursday, pointing to a rocky open as Wall Street grapples with a tragic plane crash involving Dow component Boeing (BA) and digests a blockbuster earnings report from software giant Oracle (ORCL).

U.S. stock futures have already pared about half of their overnight drop as some of the initial reaction seen across global markets has started to unwind. Oil prices have come off their highs after spiking 14%.

Investors were digesting a softer-than-expected inflation reading and assessing a US-China plan to salvage their trade truce.

The deal includes the U.S. rolling back some export restrictions on advanced technology in exchange for China's release more rare earths. In other trade news, President Donald Trump's administration is close to a deal with Mexico to lift the 50% tariff on a limited amount of imported steel,