US equity futures were edging higher pre-bell Tuesday following a rebound in the S&P 500 as traders were optimistic that a deal could still be reached between US and Iran despite a breakdown in negotiations over the weekend.

Dow Jones Industrial Average futures were flat, S&P 500 futures were up 0.2%, and Nasdaq futures were 0.5% higher.

The S&P 500 rose over 1% on Monday, erasing losses incurred since the beginning of the Middle East conflict.

President Donald Trump said Monday that Iran had reached out to the US and wanted to "make a deal very badly."

Oil prices were lower, with front-month global benchmark North Sea Brent crude down 0.2% at $99.14 per barrel and US West Texas Intermediate crude 1.4% lower at $97.72 per barrel.

The March Producer Price Index, scheduled for release at 8:30 am ET, is expected to show a 1.1% increase following a 0.7% gain in the preceding month, according to estimates compiled by Bloomberg.