US equity futures were edging higher pre-bell Tuesday as traders monitored the US-Iran situation for a potential peace agreement to end the Middle East war.

Dow Jones Industrial Average futures were 0.6% higher, S&P 500 futures were up 0.7%, and Nasdaq futures were 1% higher.

US Secretary of State Marco Rubio said that negotiations could "take a few days." Both sides said they have made progress on a potential memorandum of understanding that would end the war and provide 60 days for negotiators to reach a final deal.

The framework of the memorandum is focused on halting the war and the US naval blockade in exchange for Iran ensuring safe transit in the Strait of Hormuz, according to Iranian foreign ministry spokesperson Esmaeil Baghaei.

Traders observed the latest round of earnings, with AutoZone (AZO) reporting an increase in fiscal Q3 net income and net sales.

Oil prices were mixed, with front-month global benchmark North Sea Brent crude up 2.8% at $96 per barrel and US West Texas Intermediate crude 4.1% lower at $92.61 per barrel.

The Chicago Fed National Activity Index, due at 8:30 am ET, is seen coming in at negative 0.03 in April versus negative 0.20 in the prior month, according to estimates compiled by Bloomberg.

The March S&P Case-Shiller home price index is scheduled for release at 9 am ET. The May consumer confidence index, due at 10 am ET, is projected to fall to 92.0 from 92.8.