The U.S. military has retaliated against Iran by launching strikes on an Iranian ground control station on Qeshm Island, near the Strait of Hormuz, after Iran's failed missile attacks on Kuwait and Bahrain. The targeted Iranian facility also houses a desalination plant.

Dow Futures Slip As Markets Weigh Growing Iran Risks

Dow futures were down 91 points, or 0.18%, to 51,311, while S&P 500 futures fell 6.50 points, or 0.09%, to 7,617.75, and Nasdaq 100 futures dropped 32.00 points, or 0.10%, to 30,680.75 as of around 3:22 a.m. EDT.

In commodities, WTI crude oil climbed 1.71% to $95.29 per barrel. Brent crude added 1.08% to $88.35 per barrel.

Natural gas futures fell 0.50% to $3.154 per MMBtu.

Meanwhile, the U.S. dollar index stood at 99.37, up 0.15%.

Asian markets were higher, with South Korea's KOSPI gaining 0.15% to 8,801.49 and Japan's Nikkei 225 rising 2.66% to 68,509.13.

The U.S. Central Command dismissed claims that struck U.S. 5th Fleet headquarters in Bahrain and a U.S. air base in the region and confirmed that Iranian missiles that were fired at Kuwait reportedly disintegrated en route, while those aimed at Bahrain were intercepted by U.S. and Bahraini forces.

In another development, the U.S. military also intercepted an oil tanker, the Botswana-flagged M/T Lexie, which was attempting to reach an Iranian port in violation of the American blockade. This is the seventh ship to be intercepted while trying to bypass the blockade.

Lebanon Truce Under Pressure

This incident occurs amid a tense geopolitical climate. Just a day before the missile attacks, Israeli Prime Minister Benjamin Netanyahu reportedly received a heated call from President Donald Trump over the situation in Lebanon.

Despite a partial ceasefire plan accepted by Israel and Hezbollah, on Trump's insistence on Monday, clashes continued in southern Lebanon on Tuesday, reported the BBC. Netanyahu had confirmed the agreement with Trump, but said that strikes on Beirut would continue "if Hezbollah does not stop attacking our cities and civilians", and that the IDF would remain active in south Lebanon.

According to a CNN report, high-stakes Israel-Lebanon talks concluded for Tuesday and are set to resume on Wednesday at the U.S. State Department.

The State Of Negotiations

Iranian media indicated Tehran-Washington talks are still ongoing despite previous reports of a suspension, while Iran's chief negotiator warned of escalation if Israeli attacks on Lebanon continue.

Meanwhile, Trump took to Truth Social on Tuesday and called reports of negotiations stalling "false and erroneous" and said that the conversations between the two sides have been ongoing.

U.S. Secretary of State Marco Rubio told lawmakers during a Senate hearing on Tuesday that Iran has agreed to discuss previously off-limits parts of its nuclear program, though he cautioned that a deal remains uncertain.