The impact on oil prices and in turn, on inflation is the focus for investors already uneasy about the backdrop for stocks.

Crude oil futures pared sharp initial gains Sunday night, while U.S. stock futures improved somewhat after an initial selloff in the first trading session since Saturday's attack on Iran by the U.S. and Israel.

Major stock indexes closed mixed Monday as markets reacted to fighting in the Middle East, while oil and gold futures advanced.

Israel launched a new wave of strikes on Tehran and Iran responded with more missile barrages. Iran has said it has closed navigation through the Strait of Hormuz, prompting Asian governments and refiners to assess oil stockpiles.

Crude futures rose as the armed conflict in the Middle East prompted shippers to avoid transit through the strategic Strait of Hormuz, but settled well off earlier highs.

1548 ET – Crude futures rise for a third straight session with tensions in Iran keeping a bid in the market. “We’ve priced in a lot of geopolitical risk premium the last couple of sessions,” says John Kilduff of Again Capital. The market is keeping ...