Energy markets react to geopolitical risk on the back of Israeli military strikes on Iran's oil and gas facilities over the weekend. CNBC's Natasha Turak reports.

Israel and Iran bombarded each other for a third day, with international concern growing that the conflict will spread across one of the world’s key oil-producing regions.

The troubles in the Middle East represent a new cost of living threat at a time when households, businesses and the Chancellor can least afford it.

Stock futures wavered before Monday's session as the escalating conflict between Israel and Iran spiked oil prices and raised investors' concerns about the global economy. Dow Jones Industrial Average futures shed 56 points, or 0.1%. S&P 500 futures lost 0.1%, while Nasdaq 100 futures traded around their flatline.

Israel’s attacks on Iran’s nuclear facilities risk pushing back the timeline for Federal Reserve interest-rate cuts as the US central bank waits to assess any potential impact on inflation, economists said.

KANANASKIS, Alberta — Leaders of some of the world’s biggest economic powers arrive in the Canadian Rockies on Sunday for a Group of Seven summit, overshadowed by an escalating conflict between Israel and Iran and U.S. President Donald Trump’s unresolved trade war with allies and rivals alike.

Israel’s defense minister issued a stark warning to Iran on Saturday, saying that “Tehran will burn” as the two nations traded missile salvos following Israel’s surprise attack on Iran’s nuclear program earlier this week.