U.S. stock futures declined Tuesday, the first trading day after Labor Day, as escalating Middle East conflict pushed oil prices to six-week highs and Canada’s retaliatory tariffs on American goods took effect. Dow Jones Industrial Average futures fell 491 points, or 0.9%, at 5 a.m. ET, while S&P 500 futures slipped 0.4% and Nasdaq-100 futures declined 0.2%. Brent crude rose 2.3% to $99.22 a barrel and West Texas Intermediate gained 3.3% to $94.54 after Iran-backed Houthi militants struck energy infrastructure in Saudi Arabia, according to The Wall Street Journal. Oil has advanced for a third straight session, raising concern that prolonged energy inflation could feed into broader price pressures. The 10-year U.S. Treasury yield moved back above 4.8%, after reaching its highest level since November 2023 last week, while the 2-year note also touched a multi-year high last seen in January 2025. Investors are watching U.S. wholesale inflation data due Thursday and August consumer price index figures expected Friday. Economists expect headline inflation to remain at an annual rate of 3.4%, according to The Wall Street Journal. The Federal Reserve is scheduled to hold its monetary policy meeting next week, and CME Group’s FedWatch tool shows traders assigning a 60% probability to a quarter-percentage-point rate increase. Canada’s retaliatory levies of as much as 50% on selected U.S. products also took effect Tuesday. President Donald Trump said Monday that Canadian aerospace company Bombardier would be barred from the U.S. market unless Canada moved aircraft production to the United States. Asian and European markets also fell, with Tokyo’s Nikkei 225 down 1.7%, Seoul’s Kospi lower by 0.58%, Sydney’s S&P/ASX 200 down 1% and Hong Kong’s Hang Seng off 0.38%. The Stoxx 600 declined 0.4% at the start of Europe’s session.