Aashika Suresh
5 min read
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U.S. President Donald Trump confirmed the strikes in a post on Truth Social, saying, “The strikes are large and powerful, and in retaliation for the Iranians’ failed attempt at adding sea mines to the Strait…”
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Oil prices climbed higher amid the tensions, with no peace deal options in sight for a war that has dragged on for over six months.
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Rising oil prices pushed U.S. Treasury yields higher, with the 10-year yield climbing to 4.806%, the highest level since April 2007.
U.S. stock futures were sliding in the overnight session late Tuesday amid fresh U.S. strikes on Iranian targets near the critical Strait of Hormuz.
Dow futures fell 0.01%, while the S&P 500 and Nasdaq-100 futures declined 0.04% and 0.15%, respectively, at 10:23 PM EDT.
On Tuesday, all three benchmark indexes closed lower amid rising political tensions. The Nasdaq Composite led the losses, shedding 271 points to close more than 1% lower. The Dow Jones Industrial Average and S&P 500 fell 0.79% and 0.71%, respectively.
|
Index |
Move |
Close |
|
Dow Jones Industrial Average |
-0.79% |
52,766.88 |
|
S&P 500 |
-0.71% |
7,631.47 |
|
Nasdaq Composite |
-1.03% |
26,099.77 |
Key US Market Drivers
The September trading session started with escalating tensions with Iran after the U.S. launched fresh attacks on the Middle Eastern country near Hormuz.
U.S. President Donald Trump confirmed the strikes in a post on Truth Social, saying, “The strikes are large and powerful, and in retaliation for the Iranians’ failed attempt at adding sea mines to the Strait, which currently has no mines (They have been completely removed or detonated!), and the Iranians shooting eight missiles, all successfully knocked down, at our Military Base in Jordan. If the failed Nation of Iran retaliates for this very justified attack, they will be hit again at a much harder and higher level, but it will not be the biggest attack of them all, that is waiting in the wings and, when it is over, there will be very little left of the Islamic Republic of Iran!”
The U.S. Central Command also posted about the second day of attacks on Iran on X, saying that at 12 p.m. ET on Tuesday, U.S. forces began striking Islamic Revolutionary Guard Corps (IRGC) targets in Iran in retaliation for the “recent attempted attacks by the IRGC against commercial shipping in the Strait of Hormuz and against American service members deployed to the region.”
Brett Erickson, Managing Principal, Obsidian Risk Advisors, said in a post on X, “The United States is seeking to strike positions that will allow them to increase traffic through the Strait of Hormuz, thus lengthening the runway the U.S. and world has to impose their own economic warfare on Iran. Every action taken is to serve the purpose of economic warfare. Once each side realizes that the status quo is the best either can accomplish, there will be no need to continue military strikes.”
