U.S. stock futures fell on Monday as tensions between the United States and Iran escalated, raising investor concerns and pushing oil prices higher, while shares of chipmakers came under selling pressure.

Markets started the week amid a tense atmosphere, after the U.S. and Iran exchanged attacks, and Tehran announced the closure of the Strait of Hormuz, one of the most vital chokepoints for global energy supplies, according to Reuters.

The latest military developments raised doubts about the future of the interim agreement between the U.S. and Iran, signed last month to reopen the strait and end the war after 60 days of negotiations.

Crude oil futures rose more than 3% as investors assessed rising risks threatening the vital waterway. Nasdaq futures, which include major technology companies, led the decline, while semiconductor stocks were among the biggest losers in pre-market trading.

Memory chipmaker stocks fell sharply; Micron Technology dropped 5.3%, while Western Digital, Seagate, and SanDisk fell 5.5%, 4.3%, and 6.5%, respectively.

SK Hynix, listed in the U.S., also fell 8.1% after a strong performance in its first trading session on Nasdaq on Friday.

The iShares Semiconductor ETF declined 2.6%.

Kathleen Brooks, research director at XTB, said: 'These developments suggest that escalating geopolitical tensions and rising oil prices are once again disrupting market momentum, putting pressure on the technology sector and negatively impacting semiconductor stocks.'

As of 6:58 a.m. ET, Dow Jones futures were down 19 points, or 0.04%, S&P 500 futures fell 23.25 points, or 0.31%, and Nasdaq 100 futures dropped 283.5 points, or 0.94%.

These moves came ahead of a busy week of economic data and corporate earnings that will test the strength of the U.S. stock market recovery and corporate profitability.

The S&P 500 has risen more than 10% year to date, remaining less than 1% below its record high set in early June. It also posted its second consecutive weekly gain last week, overcoming volatility in chip stocks and renewed U.S.-Iran tensions that brought inflation risks back to investors' attention.

Major Wall Street banks, including JPMorgan Chase, Goldman Sachs, and Morgan Stanley, are expected to report their second-quarter financial results this week. Netflix, General Electric, and UnitedHealth will also release their quarterly results.

Data from the London Stock Exchange Group expects S&P 500 companies' earnings to grow 23.7% in the second quarter compared to the same period last year.

Investors will also watch a series of key economic data, starting with U.S. CPI on Tuesday, which could reshape market expectations for the interest rate path. Producer prices data is due Wednesday, followed by monthly retail sales on Thursday.

Federal Reserve Chairman Kevin Warsh is set to deliver his first congressional testimony on monetary policy Tuesday, while Fed Governor Christopher Waller speaks later Monday about the economic outlook. LSEG data indicates markets expect at least a 25-basis-point rate hike by year-end.

In stock moves, Deckers Outdoor rose 1.6% after Jefferies, an investment banking firm, upgraded the footwear maker's stock to 'Buy'.