Oil prices slipped in European trading Thursday despite escalating U.S.-Iran tensions, as markets processed overnight developments. U.S. futures rebounded from Wednesday's sharp losses, with Dow futures up 0.6% and Nasdaq futures gaining 1%. Treasury yields climbed while gold retreated, reflecting a shift toward risk assets.

President Trump authorized strikes on Iranian targets near the Strait of Hormuz after criticizing stalled negotiations, prompting Iran to close the waterway through which a fifth of global oil flows. The military action initially lifted oil prices before profit-taking reversed gains.

SpaceX will price its IPO Thursday ahead of Friday's NYSE debut, making it the week's most anticipated listing. Meanwhile, the European Central Bank is poised to raise rates for the first time in nearly three years, responding to inflation data hitting a three-year high amid Middle East supply concerns.

Asian markets reflected the geopolitical uncertainty, with Hong Kong's Hang Seng falling 0.8% and tech shares dropping 1.6%. Chinese e-commerce giants Alibaba and JD.com both slid after regulators summoned them over competition issues. South Korea's Kospi managed a modest 0.4% gain despite the broader risk-off sentiment.