Global markets eased as ⁠escalating tensions ​in the Middle East clouded the outlook for an imminent deal to open the Strait of Hormuz, adding to concerns about the health of the global economy.

Wall Street futures were in negative territory ahead of a U.S. inflation data release.

TSX futures followed sentiment lower.

Bank earnings continue to roll out today from Royal Bank of Canada, Toronto-Dominion Bank and Canadian Imperial Bank of Commerce.

RBC reported a second-quarter profit boost and increased its quarterly dividend by 12 cents to $1.76 a share.

CIBC posted an increase in second-quarter profit, on strength in its capital markets business, and no change to its dividend.

In Canada, investors are also getting results from BRP Inc.

On Wall Street, markets are watching earnings from Costco Wholesale Corp., Best Buy Co. Inc., Dell Technologies Inc., Dollar Tree Inc. and Autodesk Inc.

Overseas, the pan-European STOXX 600 was down 0.54 per cent in morning trading. Britain’s FTSE 100 slid 0.89 per cent, Germany’s DAX declined 0.19 per cent and France’s CAC 40 gave back 0.32 per cent.

In Asia, Japan’s Nikkei closed 0.47 per cent lower, while Hong Kong’s Hang Seng dropped 1.27 per cent.

Oil prices jumped after Iran’s Revolutionary ‌Guard said it targeted a U.S. airbase in response to a U.S. attack in the port city of Bandar Abbas.

Brent crude futures rose 1.9 per cent ​to US$96.06 a barrel, while the more active August contract gained 2.66 per cent to US$94.70. The July contract is set to expire tomorrow.

West Texas Intermediate (WTI) futures were rose ​1.8 per cent to US$90.34.

“The rise in oil prices highlights the fragility of the current ‘no peace, no war’ situation ⁠between the United States and Iran,” said Simon-Peter Massabni, head of business development at XS.com.

In other commodities, spot gold was down 1.5 per cent at US$4,389.99 an ounce, earlier falling ​to its lowest level since March 26. U.S. ‌gold futures for June delivery fell 1.4 per cent to US$4,387.70.

The Canadian dollar weakened against its U.S. counterpart.

The day range on the loonie was 72.09 US cents to 72.30 US cents in early trading. The Canadian dollar was down about 2.08 per cent against the greenback over the past month.

The U.S. dollar index, which weighs the greenback against a group of currencies, advanced 0.14 per cent to 99.35. The dollar was pegged at $1.3866.

The euro lost 0.13 per cent to trade at US$1.1610. The British pound declined 0.25 per cent to US$1.3394.

In bonds, the yield on the U.S. 10-year note was last up at 4.497 per cent.

Euro zone consumer and economic confidence

ECB minutes from April monetary policy meeting are released

6 a.m. ET: U.S. Conference Board CEO Confidence Index for Q1.

8:30 a.m. ET: Canada’s current account balance for Q1.

8:30 a.m. ET: Canada’s Survey of Employment, Payrolls and Hours for March.

8:30 a.m. ET: U.S. initial jobless claims for week of May 23. Estimate is 213,000, up 4,000 from the previous week.

8:30 a.m. ET: U.S. Real GDP for Q1. Consensus is a 2.1-per-cent annualized increase.

8:30 a.m. ET: U.S. PCE Price Index for April. Consensus is a year-over-year rise of 3.9 per cent.

8:30 a.m. ET: U.S. personal income and consumption for April. The Street is expecting month-over-month increases of 0.4 per cent for both.

8:30 a.m. ET: U.S. durable and core goods orders for April. The consensus projections are increases of 3.2 per cent and 0.5 per cent from March, respectively.

10 a.m. ET: Bank of Canada’s Financial Stability Report with press conference to follow.

10 a.m. ET: U.S. new home sales for April.