By Silvia Amaro, CNBC–

  • U.S. equities rose on Monday reversing earlier losses.
  • Market players are now waiting to see if the situation will escalate with a potential retaliation from Iranian forces.
  • Oil prices fell Tuesday morning after recent gains.
  • There will be U.S. trade deficit figures out at 8:30 a.m. ET.

U.S. stock index futures were hovering around the flatline Tuesday morning, despite ongoing geopolitical tensions.

At around 2 a.m. ET, Dow futures rose 37 points, indicating a higher open of more than 8 points. Futures on the S&P 500 and Nasdaq indexes were flat.

U.S. equities rose on Monday reversing earlier losses. Strong gains in the tech sector helped markets overcome initial concerns over tensions between the United States and Iran.

President Donald Trump announced last week that the U.S. had killed Iran’s top military commander in Baghdad. The president also said Sunday that he could slap sanctions on Iraq, after its parliament passed a resolution calling for the government to expel foreign troops from the country. Market players are now waiting to see if the situation will escalate with a potential retaliation from Iranian forces.

Oil prices fell Tuesday morning after recent gains. Brent was trading at $68.30 a barrel and WTI was sold at $62.73 a barrel.

In terms of data, there will be U.S. trade deficit figures out at 8:30 a.m. ET, followed by factory orders and non-manufacturing PMIs at 10 a.m. ET.