Global equity markets declined amid escalating geopolitical tensions, including reported Houthi strikes on Saudi infrastructure and U.S. embassy evacuations in Riyadh, which contributed to oil prices rising to $112 per barrel. Market sentiment was further weighed down by reports of Iran’s shadow fleet oil supplies to China being exhausted and Tesla’s 5.

35% after-hours drop following a reduction in its 2026 capital expenditure guidance.

US and Israeli officials report that military planning is underway for potential strikes on Iranian targets, including energy and nuclear infrastructure, following next month's midterm elections, with recent exercises and high-level meetings cited as evidence.

However, the likelihood of these operations proceeding remains uncertain, as President Trump has previously vetoed similar plans, and analysts question whether renewed conflict would yield better results than the earlier phase of hostilities.

Iran’s Revolutionary Guards issued a statement on Thursday warning that continued US naval escorts in the Strait of Hormuz could lead to strikes on American bases in the region. While Iranian authorities claim jurisdiction over the strait and report attacking four ships overnight, the US maintains a naval blockade on Iranian ports amid stalled negotiations, with the conflict having disrupted a route that previously handled one-fifth of global oil supplies.

Tehran stated that seven oil tankers were damaged or caught fire in the Strait of Hormuz, attributing the incidents to either Iranian action or naval mines, though the United Kingdom Maritime Trade Operations did not confirm these reports. Iranian officials have threatened to target U.

S. military bases in response to American efforts to guide commercial shipping, while asserting the country's readiness to defend itself amid ongoing diplomatic discussions.