Futures linked to the major U.S. indices tick up, suggesting a rebound in equities after reports of fresh attacks around the Strait of Hormuz dented sentiment in the prior session. The trajectory of a shaky ceasefire between the U.S. and Iran is murky as Washington drives to use its military might to crack open the closed waterway. Chipmaker Advanced Micro Devices will report its latest returns after the bell, while Apple reportedly eyes a move to diversify its supply of crucial chips.

1. Futures rise

U.S. stock futures pointed higher on Tuesday, as investors kept tabs on renewed tensions in the Middle East and awaited key economic data later this week.

By 03:34 ET (07:34 GMT), the Dow futures contract had risen by 131 points, or 0.3%, S&P 500 futures had risen by 19 points, or 0.3%, and Nasdaq 100 futures had ticked up by 112 points, or 0.4%.

The main averages on Wall Street sank in the prior session, weighed down by the U.S. and Iran carrying out fresh strikes in the Gulf region, threatening to break a fragile ceasefire. Oil prices climbed back above $110 a barrel, even as the U.S. attempted to escalate its efforts to reopen the all but shuttered Strait of Hormuz.

Energy stocks rallied off the back of the climb in crude, although FedEx and United Parcel Service both tumbled after Amazon.com said it was introducing a new offering which would intensify competition with the delivery firms.

2. U.S.-Iran truce strained

The U.S. and Iran carried out a barrage of fresh attacks on Monday, as Tehran responded to President Donald Trump’s attempt to reopen shipping through the Strait of Hormuz, a vital waterway for roughly a fifth of the world’s oil.

Several merchant ships in the Gulf region reported fires or explosions. The U.S. also claimed it had successfully helped two American-flagged vessels transit the strait and fought off attacks from Iranian drones and armed small boats.

The conflict also showed indications that it was once again spreading around the Middle East. In the United Arab Emirates, air defense systems engaged ballistic missiles and drones launched from Iran. An oil terminal in the city of Fujairah was also attacked.

Trump, who is facing increasing pressure over the war from some U.S. lawmakers, has offered few details on his plan to unblock the conduit, dubbed “Project Freedom,” while Iran’s foreign minister has warned the U.S. against being drawn into a “quagmire.”

3. Oil eases

For much of the more than two-month old war, the Strait of Hormuz has been effectively closed to tanker traffic due to the threat of Iranian strikes. Oil prices have shot up as a result, fueling fears of an inflationary spike that could weigh on global growth.

Still, traders were noting indications that the U.S. operation to escort some ships through the strait may be loosening Iran’s stranglehold over the area.

Underscoring this view was a statement from shipping giant Maersk, which said a U.S.-flagged vehicle carrier operated by one of its subsidiaries had exited the Gulf via the strait with the assistance of American military support.

Brent crude futures, the global oil benchmark, last eased down by 0.8% to $113.56 a barrel, but remain well above pre-war levels.

4. AMD to report

Advanced Micro Devices is set to headline the earnings slate, with investors curious to hear how the chipmaker is progressing in its challenge to rival artificial intelligence semiconductor powerhouse Nvidia.

In February, AMD projected that revenue would fall slightly in first quarter to around $9.8 billion, plus or minus $300 million, compared to $10.27 billion in the preceding three-month period.

The downbeat outlook came even as AMD received a boost from a resumption of sales to China, underlining the battle the company faces to compete with Nvidia.

Elsewhere, data analytics Palantir both beat quarterly estimates and lifted its revenue forecast, but shares declined in extended hours trading as finance chief David Glazer flagged that the group’s expenses would increase in 2026.

More broadly, earnings season has provided a source of optimism for investors jittery over the impact of the Iran war, driven largely by AI-linked hyperscalers. S&P 500 companies are anticipated to post aggregate profit growth of 28% versus a year ago for the first quarter, more than double expectations at the beginning of the reporting period in early April, Reuters reported, citing LSEG I/B/E/S data.

5. Apple holds talks with Intel, Samsung over processors – Bloomberg

Apple Inc has held exploratory talks with Intel and Samsung Electronics about producing processors for its devices, Bloomberg News reported on Tuesday, citing people familiar with the matter.

The move comes as the iPhone maker looks to diversify beyond long-time partner Taiwan Semiconductor Manufacturing Co, the report said.

The discussions are at an early stage and reflect Apple’s effort to reduce reliance on a single supplier for its custom chips, which power iPhones, iPads, and Macs, Bloomberg reported.

Apple has engaged Intel about potentially using its foundry services, while company executives have also visited Samsung’s new chip manufacturing facility under development in Texas, the report said.

Any shift would mark a significant change in Apple’s supply chain strategy, though no final decisions have been made, the report added.