Futures tied to major U.S. stock indices moved slightly lower as clashes between Iranian forces and a joint U.S.–Israeli campaign continued to escalate across the Middle East. Oil prices pushed higher as shipping activity through the Strait of Hormuz — a critical route for global oil and gas transport — has nearly come to a standstill. Gold rebounded after a stronger U.S. dollar recently dampened demand for the safe-haven asset. Meanwhile, CrowdStrike (NASDAQ:CRWD) released annual guidance largely in line with expectations, and reports suggest OpenAI may be exploring a new agreement with NATO.
U.S. futures drift lower
U.S. equity futures were modestly in the red on Wednesday after volatile trading during the previous session, as investors monitored the widening Middle East conflict that threatens key energy supply routes.
At 02:58 ET, Dow futures were down 109 points, or 0.2%. S&P 500 futures had declined by 15 points, also 0.2%, while Nasdaq 100 futures slipped 91 points, or 0.4%.
Wall Street’s main indices finished Tuesday lower, though they managed to recover part of the steep losses seen earlier in the day. A sharp rise in U.S. Treasury yields contributed to market swings, as investors speculated that surging oil prices could drive inflation higher and delay potential interest-rate cuts by the Federal Reserve.
“While other government bond yields have shown similar patterns, the effect is particularly strong in the U.S. where a greater number of cuts had been priced in,” Bradley Saunders, North America Economist at Capital Economics, told Investing.com.
The confrontation between Iran and U.S.–Israeli forces has now entered its fifth day, with Iranian missile strikes targeting U.S. bases across the Middle East and in several Gulf countries. Although a senior American military official said operations against Tehran are progressing ahead of the “game plan,” concerns are growing that the conflict could evolve into a prolonged regional war.
Separately, markets were also keeping an eye on renewed concerns in private credit markets after Blackstone’s flagship private credit fund recorded a sharp rise in investor withdrawals.
Oil prices climb
A major concern for financial markets is the possibility that fighting in the Middle East could lead to sustained disruptions to shipping through the Strait of Hormuz, a vital maritime route responsible for a significant share of global oil and gas flows.
Brent crude prices — which had traded near $73 per barrel before the attacks on Iran began — have surged. Brent futures were last up 2.6% at $83.48 per barrel, while U.S. West Texas Intermediate crude futures rose 2.5% to $76.41 per barrel.
Earlier on Tuesday, oil prices spiked by as much as 8% before giving back part of those gains after President Donald Trump indicated that the U.S. could begin escorting ships through the Strait of Hormuz.
Natural gas prices have also surged across Europe and Asia. Iranian strikes on a Qatari gas facility have disrupted shipments from the major exporter, tightening supply in several countries that depend on these deliveries.
At the same time, diesel prices have risen as well, potentially increasing transportation costs — a key component in inflation calculations.
Concerns about rising energy costs have hit Asian equities particularly hard. Economies in East Asia, including South Korea and Japan, rely heavily on oil and gas imports that pass through the Strait of Hormuz, leaving them exposed to disruptions along the route south of Iran. South Korea’s Kospi index fell so sharply on Wednesday that trading was briefly halted.
Gold rebounds
Gold prices rose on Wednesday in the latest swing of volatile trading for the precious metal.
Spot gold climbed 1.7% to $5,176.75 after dropping nearly 5% in the previous session. Gold futures also gained 1.3%.
The U.S. dollar index remained broadly unchanged after rising nearly 1.5% over the previous two days.
Although gold is typically viewed as a safe-haven asset during periods of geopolitical tension or rising inflation, its appeal was recently weakened by the strengthening dollar. Investors also appeared cautious after the metal reached record highs in recent sessions.
CrowdStrike releases results
On the corporate front, CrowdStrike (NASDAQ:CRWD) reported fourth-quarter earnings that exceeded analyst expectations and issued fiscal 2027 guidance largely in line with forecasts, at a time when investors are closely watching the impact of artificial intelligence on the software industry.
Shares of the cybersecurity company slipped slightly in extended trading on Wednesday.
The Austin-based firm reported earnings of $1.12 per share for the quarter, above analyst estimates of $1.10. Revenue came in at $1.31 billion, slightly ahead of the $1.30 billion consensus.
Company executives noted that the growing adoption of artificial intelligence across enterprises is increasing demand for advanced security solutions, positioning CrowdStrike to benefit as businesses look to protect AI-related data and workloads.
OpenAI reportedly exploring NATO contract
OpenAI is reportedly evaluating a potential new agreement with the North Atlantic Treaty Organization, according to several media reports released Tuesday. The development follows the company’s recent deal with the U.S. Department of Defense.
The Wall Street Journal initially reported comments from OpenAI CEO Sam Altman suggesting that the company was considering a contract to deploy its technology across NATO’s classified networks. However, the newspaper later reported that an OpenAI spokesperson clarified that Altman had misspoken and that the proposed deployment would involve unclassified networks.
Reuters also reported that the artificial intelligence developer is reviewing a possible agreement to deploy its technology within NATO’s unclassified systems.
Last week, OpenAI announced a separate deal that will integrate its AI technology into the Pentagon’s classified network. The agreement came after U.S. authorities ended cooperation with Anthropic and labeled the developer of the Claude AI model a “supply-chain risk.” Anthropic had previously refused to allow its AI systems to be used for domestic mass surveillance or for fully autonomous lethal weapons.