U.S. stock futures slipped and Treasurys weakened in early European trade, as higher oil prices dragged sentiment before investors return from the Labor Day weekend.

The yen neared its strongest level against the dollar of 2026, extending a recent surge spurred by higher Bank of Japan rate expectations and a softer dollar. The Japanese currency hit a fresh six-month high against the greenback in Asian trade Tuesday, surpassing levels seen following coordinated U.S.-Japan market intervention in July.

U.S. markets wobbled, with stock futures largely falling while Treasurys slipped. Futures for the Dow Jones Industrial Average fell 411 points, or 0.8%, while S&P 500 futures edged 0.25% lower. Nasdaq futures steadied after earlier falling to trade flat in the European afternoon.

Yields on 10-year Treasurys moved 0.6 basis point higher to 4.794%, while 30-year yields nudged up 0.8 basis point to 5.255%.

Brent crude contracts for November delivery nudged closer to $100 a barrel but pared gains from earlier in the European session, trading up 1.7% at $98.69, while WTI futures rose 2.6% to $93.87 following reports of attacks on Saudi Aramco infrastructure. Meanwhile, crude demand from China is rebounding, according to a Bloomberg report.

"Markets are increasingly pricing a prolonged Mideast conflict," analysts at Goldman Sachs said. The bank's commodities research department warned Brent could hit $120 if attacks on shipping in the Middle East intensify.

In metals markets, copper extended recent gains to trade at a fresh record in London, as fears over potential U.S. tariffs and supply concerns combined to push three-month futures to $14,690.50 a metric ton.

Asian and European stock markets were subdued. South Korea's Kospi gave up 0.6% and Japan's Nikkei Stock Average declined 1.7%, while the Europe-wide Stoxx 600 drifted 0.05% lower.

The dollar touched a two-week low against a basket of global currencies earlier in the European day before recovering slightly. Bitcoin fell 1.7% to $78,284.99, while gold futures fell 1% to $4,433.70 a troy ounce.

Investors await U.S. inflation data Friday, which will set the stage for next week's Federal Reserve meeting. Tuesday saw Canadian counter-tariffs on U.S. imports come into effect.