US stock futures staged a rebound and oil prices fell as investors grew confident that the conflict between Israel and Iran will remain contained.

U.S. stock index futures edged higher on Monday as easing oil prices helped calm sentiment despite ongoing attacks between Iran and Israel and increased focus on the upcoming Federal Reserve meeting.

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,

Stock futures fell sharply early Thursday, pointing to a rocky open as Wall Street grapples with a tragic plane crash involving Dow component Boeing (BA) and digests a blockbuster earnings report from software giant Oracle (ORCL).

Futures linked to Canada's main stock index recovered from the declines of the previous session on Monday, with investors shifting focus from the Middle-East tensions to this week's G7 summit and U.S.

U.S. futures for the S&P 500 were up 0.5% and futures for the Dow Jones Industrial Average increased 0.5%. Changes in futures do not necessarily predict movements after the opening bell.

Oil prices rose again as Iran and Israel continued to launch strikes against each other at the start of a busy week for central banks.

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.