Late Tuesday, the U.S. military launched a series of strikes against Iran, responding to attacks on commercial ships in the Strait of Hormuz. The move reignited fears of a broader Middle Eastern conflict, sending oil prices higher and weighing on equity futures as traders assessed the safety of one of the world's most vital energy arteries.

Oil Prices Rise As Markets Turn Cautious

Dow futures fell 66 points, or 0.12%, to 53,131.00, while S&P 500 futures edged up 0.25 points, or 0.00%, to 7,551.50. Nasdaq 100 futures gained 60 points, or 0.20%, to 29,451.50 as of around 8:30 p.m. EDT. The mixed moves suggest investors are still digesting the news, with tech stocks showing relative resilience.

In commodities, WTI crude oil rose 2.90% to $72.48 per barrel, and Brent crude climbed 2.67% to $76.14 per barrel. Natural gas futures advanced 0.46% to $3.28 per MMBtu. The U.S. dollar index held steady at 101.117, little changed on the day.

Asian markets took a hit. South Korea's KOSPI fell 1.98% to 7,504.47, and Japan's Nikkei 225 declined 0.86% to 67,668.47, reflecting the region's sensitivity to oil price spikes and geopolitical instability.

US Launches Retaliatory Strikes On Iran

In a post on X, U.S. Central Command (CENTCOM) said: "U.S. Central Command forces have begun launching a series of powerful strikes against Iran to impose heavy costs for targeting and attacking commercial shipping crewed by innocent civilians in an international waterway."

CENTCOM added that the operation was in response to "Iranian attacks on three commercial vessels that were transiting the Strait of Hormuz," calling Tehran's actions "unwarranted, dangerous, and a clear violation of the ceasefire."

Iran's President Returns To Tehran

Iranian President Masoud Pezeshkian cut short his visit to Iraq and returned to Tehran after attending the funeral of former Supreme Leader Ayatollah Ali Khamenei in Najaf, according to Iranian state media, as reported by CNN. The return comes as President Donald Trump attends the NATO summit in Ankara, Turkey.

Retaliatory Strikes Threaten Ceasefire

The latest exchange follows last month's military confrontation between Washington and Tehran. Both sides had signed a memorandum of understanding aimed at halting hostilities, reopening the Strait of Hormuz, and continuing negotiations over Iran's nuclear program. The renewed strikes now threaten that fragile agreement.