President Donald Trump has warned Iran of severe economic consequences or the destruction of its leadership unless Tehran agrees to a deal, while Iranian officials have threatened retaliation.

US Stock Futures Rise, Oil Prices Fall as Asian Markets Gain

Dow futures rose 120 points, or 0.23%, to 52,199.00, while S&P 500 futures gained 26 points, or 0.34%, to 7,738.50. Nasdaq 100 futures advanced 164 points, or 0.55%, to 30,081.25 as of around 8:48 p.m. EDT.

In commodities, WTI crude oil fell 1.61% to $98.69 per barrel, while Brent crude declined 1.43% to $102.38 per barrel. Natural gas futures fell 1.24% to $2.876 per MMBtu.

Meanwhile, the U.S. dollar index, which tracks the greenback against a basket of currencies, stood at 100.254, up 0.04% at the time of writing.

Asian markets traded higher, with South Korea's KOSPI rising 0.73% to 6,944.56, while Japan's Nikkei 225 gained 1.38% to 65,018.95.

Trump Warns Iran As Tehran Threatens Retaliation

On Sunday, Trump warned that Iran could face economic collapse or have its leadership wiped out if it refuses to reach an agreement with Washington, according to a Fox News reporter who spoke with the president.

Trump also indicated he would be open to meeting Iranian President Masoud Pezeshkian, who is expected in New York for the United Nations General Assembly this week.

Iran's military, meanwhile, said any new attack would trigger sustained retaliation against U.S. bases and interests, while warning that Washington's regional allies could also be treated as participants in the conflict, Reuters reported.

Houthis Escalate Attacks on Saudi Arabia

The confrontation widened over the weekend after Yemen's Iran-backed Houthi group claimed missile and drone attacks on sensitive targets in Riyadh.

The U.S. State Department issued a security alert warning of possible further escalation and urging Americans in the region to remain vigilant.

Strait of Hormuz Keeps Energy Markets on Edge

Iran has continued restricting shipping through the Strait of Hormuz, while the Houthis' position near the Bab el-Mandeb Strait threatens another major route for energy and commercial shipments.

Iran on Sunday reiterated that it will not reopen Hormuz until conditions tied to a June ceasefire agreement are met. That agreement collapsed in July, stalling diplomatic efforts.