Oil prices surged with Brent crude climbing 4.6% to $98.39 a barrel and WTI futures rising 3.4% to $89.75 as U.S. forces struck Iran for a 12th consecutive day and Houthi rebels attacked Saudi tankers in the Red Sea. The U.S. is amassing forces to expand President Trump's military options, while Treasury yields held near multimonth highs on inflation concerns.

Equity markets reacted negatively to earnings from Alphabet and Tesla, which fell 3.1% and 4.6% after-hours respectively over worries about AI spending scale. Nasdaq futures slid 0.7%, though chip makers gained on increased spending outlook. S&P 500 futures dropped 0.5% and Dow futures declined 0.55%.

Blackstone and Intel report earnings Thursday alongside the European Central Bank's policy decision, with rates expected unchanged. Focus centers on ECB chief Christine Lagarde's press conference amid speculation about her future. Deutsche Bank analysts note no sign of easing in the U.S.-Iran conflict.

Shipping data shows sharply reduced traffic through the Strait of Hormuz and vessels rerouting to avoid the Red Sea after Houthi blockade announcements, raising concerns over longer shipping times, higher freight costs, and tighter global oil supplies if conflict escalates further.