Wall Street futures rebounded Wednesday after reports of secret Iranian overtures for ceasefire talks, even as military strikes continued across the Middle East. U.S. futures erased earlier losses following a New York Times report that Iranian operatives had reached out to discuss ending the conflict, though American officials remain skeptical about Tehran's intentions.

Oil prices had surged as much as 8% Tuesday amid fears of prolonged disruption to Strait of Hormuz shipping, but moderated after President Trump suggested the U.S. might escort vessels through the vital waterway. Brent crude traded at $83.48 per barrel, up 1.6%, while West Texas Intermediate crude gained 0.9% to $75.26. The conflict has already halted natural gas flows from Qatar after Iranian attacks on production sites.

Asian markets bore the brunt of the selloff, with South Korea's Kospi index falling so sharply that trading was temporarily suspended. Nations like South Korea and Japan face particular exposure given their heavy reliance on oil and gas shipments through the narrow passageway south of Iran. Meanwhile, Israeli officials have urged the U.S. to ignore Iran's outreach, preferring to continue targeting Tehran's military infrastructure.