Updates before market open

By Ragini Mathur and Avinash P

July 8 (Reuters) - Wall Street's main indexes were set to open lower on Wednesday after President Donald Trump said an interim deal aimed at ending the war with Iran was "over," sending oil prices higher and triggering a global risk-off move.

Speaking in Ankara, where he was attending a NATO summit, Trump said he had no interest in engaging further with Iran.

His remarks marked the latest turn in a conflict where rhetoric from the U.S. and Iran has repeatedly swung between military escalation and diplomacy. Investors have been wrong-footed several times by false dawns - when hopes for a lasting peace deal rose, only to fade without resolution.

"The million-dollar question is whether this marks a complete breakdown in negotiations and a return to hostilities, or merely a temporary setback," said Matthew Ryan, head of market strategy at Ebury.

Oil prices extended gains on Wednesday following Trump's remarks, with Brent crude futures LCOc1 and U.S. West Texas Intermediate crude futures CLc1 both rising more than 4%.

"It's a big wake-up call for the markets because the expectation was that following the MOU, we were likely to start to see the flow of oil coming back into the markets. And we saw inflation expectations being dialed down," said Aneeka Gupta, director of macroeconomic research at WisdomTree.

The jump in crude prices lifted energy stocks in premarket trading. Chevron CVX.N rose 1.5%, Exxon Mobil XOM.N gained 1.3% and ConocoPhillips COP.N advanced 1.8%.

Devon Energy DVN.N climbed 1.6%, while Occidental Petroleum OXY.N, APA Corp APA.O and Diamondback Energy FANG.O were up 2.2%, 2.1% and 1.7%, respectively.

Travel stocks fell as higher oil prices stoked concerns over fuel costs and demand.

United Airlines UAL.O dropped 3%, Southwest Airlines LUV.N lost 2.1% and Delta Air Lines DAL.N fell 2.4%.

Cruise operators also slipped, with Carnival CCL.N down 2.2%, Royal Caribbean RCL.N 2.2% and Norwegian Cruise Line NCLH.N 2.7%.

At 08:48 a.m. ET, Dow E-minis YMcv1 were down 443 points, or 0.83%, and S&P 500 E-minis EScv1 were down 39.25 points, or 0.52%. Nasdaq 100 E-minis NQcv1 were down 201.25 points, or 0.68%.

Small-cap Russell 2000 index futures RTYcv1 fell 0.6%. The CBOE Volatility Index .VIX, Wall Street's fear gauge, hit an over one-week high, climbing 1.3 points to 17.45.

The latest escalation threatened to unsettle the equities rally that has carried the benchmark S&P 500 .SPX up about 10% so far this year, despite sharp declines earlier in 2026 due to the Iran conflict. A renewed jump in oil prices could revive inflation concerns and further complicate the Federal Reserve's path.

The Fed's June policy meeting minutes are due later in the session. The readout could offer better clues on how policymakers are assessing inflation risks and economic growth.

According to CME's FedWatch tool, markets are currently pricing in at least one rate hike by the end of 2026.

Technology stocks were also under pressure after a volatile stretch for the sector in recent weeks.

Broadcom AVGO.O pared declines and turned positive to trade 0.2% higher after Apple AAPL.O said it plans to spend more than $30 billion as part of a chip-supply agreement reached earlier this week with the chipmaker.

Other chip stocks were broadly lower, with the iShares Semiconductor ETF SOXX.O down 1.6%.