Oil prices were little changed, with Brent crude futures down 0.48% as of 5:30 a.m. ET. At the same time, S&P 500 futures were down nearly 0.7% and the tech-heavy Nasdaq Composite had slipped 1.18%, as the escalations compounded a broader AI sell-off.
Travel stocks, like United Airlines and Royal Caribbean, which got a boost on Tuesday as oil prices fell, lost some of those gains in premarket trading. Meanwhile, oil giants such as Chevron and Exxon ticked higher and chipmakers such as Arm Holdings and Micron continued to slip.
The escalation ladder began ratcheting back up when Iran shot down an American helicopter with a drone while it was patrolling the Strait of Hormuz, a US official told NBC News. US forces then conducted strikes in Iran’s Qeshm Island, Sirik, Jask, and Bandar Abbas, according to Al Jazeera. In response, Iran attacked a US fleet in Bahrain, Al Jazeera also reported.
“The Iranians are trying to make clear that any attack on them would be responded to, regardless of the size and the scope,” Trita Parsi of the Quincy Institute for Responsible Statecraft in the US told Al Jazeera. “Now, of course, whether they are seeking to escalate the situation or de-escalate remains to be seen, and it will be very much measured by how they calibrated their response by attacking these US bases.”
The scope of the strikes and counterstrikes broadened out as of early Wednesday morning in Iran. Kuwait activated its air defense systems to intercept strikes, its army announced.
Mohamed Vall, a reporter for Al Jazeera reporting from inside Iran, described “a lot of activity in terms of air defence by the Iranians, and they talked about the downing of a helicopter, an American MQ-9 [drone] over Bushehr. So that gives you an idea about the scope of these attacks and counterattacks, or these retaliations across the Strait of Hormuz and the Gulf region tonight.”
Iran’s IRGC also reported targeting a hangar for American F-35 jets in Jordan, Al Jazeera reported.
