Wall Street futures edged lower on Friday as ongoing Middle East tensions fueled risk-off sentiment among investors. The conflict between Israel and Hamas has escalated, with Israeli airstrikes intensifying and Hamas launching retaliatory attacks. Meanwhile, traders are closely watching upcoming U.S. nonfarm payrolls data, which will be released later this week, for clues about the Federal Reserve's future monetary policy. The data could influence expectations about interest rate cuts, affecting the U.S. dollar and global markets. The Middle East conflict has heightened geopolitical risks, prompting investors to shift toward safer assets like gold and U.S. Treasuries. However, the uncertainty also supports oil prices due to potential supply disruptions. The jobs report will be critical in determining whether the Fed can maintain a dovish stance despite inflation concerns. A weaker-than-expected report might accelerate rate-cut expectations, while stronger data could delay easing. For traders, the coming week offers a key test of market resilience amid overlapping risks. Gulf investors should monitor how energy prices react to both the conflict and U.S. policy signals. The interplay between geopolitical tensions and economic data will likely drive volatility in equities, commodities, and the dollar. Key assets to watch include the S&P 500 futures, U.S. Dollar Index, and Brent crude oil.

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