US equity futures were edging higher pre-bell Friday as traders awaited the second of two key inflation reports this week and observed a drop in oil prices.

Dow Jones Industrial Average futures were 0.4% higher, S&P 500 futures were up 0.5%, and Nasdaq futures were 0.6% higher.

The US is continuing its campaign of economic pressure on Iran and its financial connections, with Treasury Secretary Scott Bessent saying that "a large bank" will be sanctioned by the US on Monday, according to a CNBC report.

Iran-backed Houthi forces have taken over the port city of Mokha in Yemen, potentially giving Iran an avenue to increase attacks on vessels in the Red Sea, which has been an alternative route for ships avoiding the Strait of Hormuz, The Associated Press reported.

Traders digested the latest round of earnings, with Kroger (KR) posting higher fiscal Q2 adjusted earnings and sales.

Oil prices were lower, with front-month global benchmark North Sea Brent crude down 3.3% at $104.06 per barrel and US West Texas Intermediate crude 3.1% lower at $99.31 per barrel.

The August consumer price index, a major inflation indicator scheduled for release at 8:30 am ET, is seen gaining 0.4% month over month, compared with a 0.1% increase in the prior month, according to estimates compiled by Bloomberg.

The University of Michigan consumer sentiment index for September, slated for 10 am ET, is expected at 51.0, down from 51.7 previously.