US stock futures fell with investors on edge as Israel and Iran continued to trade strikes against a backdrop of shifting US trade policy and stubborn interest rates.

Stock futures were roughly flat on Monday evening as investors continued to monitor the conflict between Israel and Iran. Futures tied to the Dow Jones Industrial Average added 26 points, or 0.06%. S&P 500 futures inched up 0.03%, while Nasdaq 100 futures lost 0.02%.

Futures on Wall Street have declined on Tuesday morning Indian time after an uneasily positive session to start the truncated week. The Dow futures are currently down 165 points, while the S&P 500 and Nasdaq futures are down 30 and 110 points respectively.

U.S. ultra-low sulfur diesel futures hit the highest level since February, outpacing gains in oil and gasoline as analysts warned that diesel supply is the most exposed to the conflict in the Middle East.

Gold futures pared gains after rising close to a fresh record earlier in the session. Futures were down 0.5% at $3,433.90 a troy ounce, after opening near the record high of $3,509.90/oz. The precious metal rallied on Friday as rising Middle East tensions fuelled safe-haven demand,

U.S. stock futures were lower with investors also focused on inflation data due later Wednesday.

Japanese bond futures dropped after the central bank held rates steady and said it would slow its tapering of government bond buying from the start of the next fiscal year.