(Reuters) – U.S. stock index futures fell on Tuesday as soaring oil prices and hawkish comments from a Federal Reserve official spooked investors, with focus turning to talks between U.S. President Joe Biden and Fed Chair Jerome Powell later in the day.

As U.S. traders returned from a long weekend, European shares slipped and Brent crude climbed above $120 a barrel after the European Union agreed to a partial ban on Russian oil and China decided to lift some COVID-19 restrictions earlier this week. [O/R] [MKTS/GLOB]

Fed Governor Christopher Waller said on Monday the U.S. central bank should be prepared to raise rates by a half percentage point at every meeting from now on until inflation is decisively curbed.

Waller’s comments sparked a sell-off in bond markets, with the benchmark 10-year U.S. Treasury yield climbing to a one-week high, as traders wound back recent expectations that the Fed might pause for breath after hikes in June and July. [US/]

Biden said the Fed has a primary responsibility to control inflation and vowed not to seek “to influence its decisions inappropriately” ahead of a meeting with the central bank chief on Tuesday.

Stock markets have sold off sharply this year against the backdrop of the Ukraine conflict, surging COVID-19 cases in China and tightening financial conditions.

All the three major U.S. indexes last week snapped their longest weekly losing streak in decades as signs of peaking inflation and consumer resiliency brought back buyers into the market.

The benchmark S&P 500 added 0.6% this month following an 8.8% plunge in April, while the blue-chip Dow rose 0.7%.

The tech-heavy Nasdaq was set for its second straight monthly loss, down 1.7% in May, as high-growth stocks tend to underperform when interest rates rise.

At 7:33 a.m. ET, Dow e-minis were down 165 points, or 0.5%, S&P 500 e-minis were down 18 points, or 0.43%, and Nasdaq 100 e-minis were down 7.25 points, or 0.06%.

U.S.-listed shares of Yamana Gold Inc jumped 17.2% after South African miner Gold Fields Ltd agreed to buy the Canadian miner in a $6.7 billion all-share deal.

Occidental Petroleum rose 2.5% to lead gains among the energy stocks.

(Reporting by Anisha Sircar in Bengaluru; Editing by Shounak Dasgupta)