Oil prices settled after U.S. and Iran exchanged fire, with Brent hovering at $77.85 a barrel and WTI at $73.30. European blue‑chip indexes climbed, while U.S. stock futures moved into the green.

The flare erupted when U.S. Central Command reported that U.S. forces struck 90 military targets near the Strait of Hormuz. Iran responded by striking U.S. bases in Bahrain and Kuwait. President Trump said Iran reached out for a deal, though Tehran offered no new talks.

U.S. Treasury yields stabilized after a dip linked to Trump’s comments, and the dollar slipped as traders weighed a potentially less hawkish stance from the Federal Reserve. Investors will monitor the European Central Bank’s latest meeting and upcoming U.S. initial jobless claims.

Meanwhile, Russia’s diesel export ban until July adds supply pressure, especially for middle distillates, and raises concerns for Gulf producers trying to restore output. Shipping through the Strait of Hormuz could face renewed uncertainty, tightening market sentiment.