While Tehran probes with missiles, Jerusalem is in a bind

US stock futures rose, with Nasdaq futures gaining 1.4% and S&P futures up 0.5% as of 7:20 a.m. ET, led by semiconductor stocks after gains in Japan and South Korea. A report indicated TSMC plans price increases, while overnight events included a Houthi-imposed blockade on Saudi Arabia amid tensions involving Iran.

Trading showed higher commodity prices, a steeper yield curve, and a flat dollar, with upcoming data releases including the ADP weekly employment change and Philadelphia Fed non-manufacturing index.

Reports indicate ongoing US-Iran tensions into a tenth day, including a tanker strike in the Strait of Hormuz and Houthi threats to Red Sea shipping. US Central Command conducted strikes on Iranian command, missile, and air defense sites, while Reuters reported mediator proposals for a 10-day ceasefire and statements from both sides outlining conditions for halting attacks.

Bloomberg data showed Hormuz transits reduced to six vessels as of Tuesday morning.

US Secretary of War Pete Hegseth posted social media images showing damage to a maritime control tower at Iran’s Chabahar port following reported US military strikes, accompanied by the caption “Iran does not control the Strait of Hormuz.” India’s Ministry of External Affairs stated that the Shahid Beheshti terminal operated by India at the port sustained no damage.

The ministry reiterated its position that civilian infrastructure should not be targeted during conflicts.

The U.S. Central Command reported conducting strikes on Iranian military command centers, missile and drone sites, and air defense systems on Monday evening. Iran attacked a tanker in the Strait of Hormuz early Tuesday, and Houthi forces declared a maritime embargo against Saudi Arabia.

Reports indicate that mediators have proposed a 10-day ceasefire, while Rystad Energy noted risks of higher oil prices.