On Thursday, U.S. and Iranian forces exchanged fire near the Strait of Hormuz. While oil prices went up, President Donald Trump downplayed the confrontation as a "love tap."

Oil Prices Surge On Strait Of Hormuz Risk

Dow futures rose 24.00 points, or 0.05%, to 49,724.00, while S&P 500 futures gained 6.50 points, or 0.09%, to 7,369.50 and Nasdaq 100 futures added 45.50 points, or 0.16%, to 28,727.75 as of 8:35 p.m. EDT.

In commodities, WTI crude oil climbed 2.14% to $96.84 per barrel, while Brent crude advanced 2.41% to $102.47 per barrel as of 1:36 a.m. BST.

Natural gas futures rose 0.65% to $2.787 per MMBtu.

Meanwhile, the U.S. dollar index stood at 98.252, down 0.01% as of 06:16 GMT+5:30.

In Asia, Japan's Nikkei 225 slipped 0.56% to 62,482.41, while South Korea's KOSPI fell 1.89% to 7,348.75.

US-Iran Clash Erupts Near Critical Oil Chokepoint

In a post on X, U.S. Central Command said Iran deployed missiles, drones and small boats targeting three U.S. Navy destroyers.

The U.S. responded with strikes on Iranian missile and drone sites and other related military positions.

"CENTCOM does not seek escalation but remains positioned and ready to protect American forces," the command said.

Iran also warned it would respond to any attack, with a military spokesperson saying the U.S. and its allies would face a forceful and immediate response to any aggression, Reuters reported.

The country's Press TV later reported that calm had returned after hours of clashes near the Strait of Hormuz.

The two sides have intermittently exchanged fire since the April 7 ceasefire.

Trump Downplays Tensions As 'Love Tap'

Speaking to an ABC reporter, Trump referred to the exchange as "just a love tap," according to a social media post by the journalist. He also added that the ceasefire was still in effect and ongoing.

Trump also took to Truth Social and said that three U.S. destroyers leaving the Strait of Hormuz came under fire but were unharmed, adding that Iranian attackers and several small boats were "destroyed."

He urged Iran to accept a deal, warning of stronger U.S. action if no agreement is reached quickly. "We'll knock them out a lot harder, and a lot more violently, in the future, if they don't get their Deal signed, FAST."

Earlier, Washington proposed a framework to end the conflict but excluded key demands for Iran to halt its nuclear program and reopen the Strait of Hormuz, a major global oil route. Iran said it was still reviewing the proposal.