By ELAINE KURTENBACH and MATT OTT, AP Business Writers<\/p>\n
U.S. stock futures were mixed early Tuesday as flare-ups in the broadening Middle East conflict pushed oil prices higher.<\/p>\n
Futures for the S&P 500 fell 0.3% before the bell, while futures for the Dow Jones Industrial Average slid 0.8%. Nasdaq futures were unchanged.<\/p>\n
A wave of Houthi attacks<\/a> on oil facilities and utilities in Saudi Arabia\u2019s southern region has escalated renewed fighting between an important U.S. ally and Iranian-backed rebels in Yemen.<\/p>\n In energy markets, Brent crude, the international standard, added 1.5% to $98.48 a barrel \u2014 its highest level in about six weeks \u2014 as tensions simmered in the six-month<\/a> U.S. war with Iran.<\/p>\n Benchmark U.S. crude surged 2.5% to $93.79 a barrel, about 40% than it was in late February just before the U.S. and Israel launched their attacks on Iran.<\/p>\n Elevated oil prices have raised costs<\/a> for consumers and businesses alike and give this week\u2019s inflation data from the government even more weight than usual. The Federal Reserve meets next week to decide whether to cut, raise or hold interest rates. That decision has been made more complicated by a fairly sturdy job market<\/a> and a historically low employment rate.<\/p>\n On Thursday, the U.S. government will release its August report for inflation at the wholesale level, called the Producer Price Index, or PPI. It provides data on prices for businesses before they pass along the costs to consumers.<\/p>\n The more closely watched Consumer Price Index comes out on Friday. The CPI provides details on price changes for specific grocery items, furniture, and clothing, among other categories.<\/p>\n In Asia, Tokyo\u2019s Nikkei 225 gave up early gains, sinking 1.7% to 65,269.33 as major exporters were sold due to a surge in the value of the Japanese yen.<\/p>\n Shares in Toyota Motor Corp. shed 4.1%, while electronics maker Panasonic Holdings Corp. fell 5.8%.<\/p>\n Early Tuesday, the U.S. dollar edged down to 154.25 Japanese yen from 154.34 yen. The yen has gained value against the dollar in the past few days on expectations that the U.S. and Japanese governments might intervene to prevent the yen from weakening further. Last week, the dollar briefly rose to about 160 yen.<\/p>\n The government reported that the economy grew at a slightly faster annual pace in the April-June quarter than earlier reported, at 1.4%. Earlier, the Cabinet Office had estimated the annualized growth rate at 1.1%.<\/p>\n The revision reflects stronger business investment than earlier reported, though overall investment still contracted, at minus 0.9%, Norihiro Yamaguchi of Oxford Economics said in a commentary.<\/p>\n \u201cThe boost to consumption from policy measures seen in April-May is already fading, and supply-side-driven inflation will accelerate ahead as firms will pass on increased costs, deteriorating consumers\u2019 purchasing power,\u201d he said.<\/p>\n South Korea\u2019s Kospi fell back after an early rally, losing 0.6% to 6,954.52. Shares in Samsung Electronics handed back early gains to slip 0.2%.<\/p>\n Hong Kong\u2019s Hang Seng lost 0.4% to 25,317.18, and the Shanghai Composite index edged 0.2% higher, to 3,940.55.<\/p>\n