U.S. stock futures took a hit Thursday, and Asian markets followed suit, after reports surfaced that the U.S. and Israel have drawn up plans for potential renewed strikes on Iran after the November midterm elections. The geopolitical uncertainty pushed Brent crude above $110 a barrel.

US and Israel Prepare Fresh Iran Strikes

S&P 500 futures slipped 0.4%, while Nasdaq futures declined 1.59%. According to Reuters, MSCI's broadest Asia-Pacific index outside Japan dropped 0.2% as investors weighed Middle East tensions alongside concerns over artificial intelligence spending.

The selloff widened across Asia as investors assessed the risk of renewed Middle East hostilities alongside concerns over technology valuations. Japan's Nikkei fell as much as 2%, South Korea's Kospi plunged more than 4%, and Hong Kong's Hang Seng dropped over 3%.

Technology stocks led the retreat, with semiconductor companies including Samsung Electronics Co. Ltd. (OTC:SSNLF) and SK Hynix Inc. (NASDAQ:SKHY) facing selling pressure.

The U.S. and Israeli militaries have developed plans for renewed strikes targeting Iran's nuclear facilities, energy infrastructure and missile arsenal after the November 3 elections, The New York Times reported on Wednesday, citing officials familiar with the preparations. Defense Secretary Pete Hegseth met Israeli Prime Minister Benjamin Netanyahu this week as military exercises intensified.

However, President Donald Trump has said the U.S. will not attack Iran before the Nov. 3 midterm elections. A White House official speaking to NYT declined to discuss plans "that may or may not exist," saying Trump continues to consider his options.

The White House did not immediately respond to a request for comment by MarketDash.

Oil Prices Surge As Regional Risks Intensify

Brent crude climbed 2.50% to $111.54 as investors assessed threats to Gulf energy supplies. The U.S. State Department also ordered some diplomats and family members to leave its missions in Saudi Arabia following Houthi attacks, Reuters reported. The latest escalation follows warnings that renewed fighting after the midterms could threaten shipping and further inflate energy prices.

Iran Threatens Retaliation As Diplomacy Stalls

Iranian officials have warned that renewed U.S. or Israeli strikes could trigger broader retaliation across the region. Iranian officials have expressed skepticism over Trump's intentions before the elections, while diplomacy with Washington has stalled.

Earlier, Trump said Washington was holding "productive" negotiations but acknowledged persistent disagreements over Iran's nuclear program and reopening the Strait of Hormuz. The uncertainty threatens to prolong the energy-price pressures that have already weighed on global markets.