Stock futures were dropping, potentially extending the indexes' selloff on Friday. Oil futures were set to react to new attacks as the Iran war marks its 100th day with no peace deal in sight.
S&P 500 futures were down 0.3%, while Nasdaq futures were down 0.2%; Dow futures were down 0.36%.
At the same time, futures tracking Brent and WTI crude were both rising over 2%.
The prospects for peace seemed more distant after Iran fired missiles toward Israel on Sunday, as The Wall Street Journal reported, after an earlier Israeli airstrike on Beirut targeted the Hezbollah militants backed by Tehran.
Iran had earlier threatened to hit Israel and American military bases in the Middle East because of Israeli airstrikes on Lebanon's capital, despite the U.S.-announcing a ceasefire between Israel and Lebanon last week, the Journal report said.
It's the first time Iran has targeted Israel since the U.S. ceasefire went into effect in early April. Israel's military said it had also intercepted rockets Hezbollah fired earlier into northern Israel.
In an interview that aired Sunday morning, President Donald Trump was asked why Iranian officials haven't agreed to the terms the U.S. has proposed despite his repeated assertions that they are desperate for a deal. Trump told NBC's Meet the Press that it's "because they're strong. They're proud."
The Nasdaq Composite had its worst day in more than a year on Friday after early AI stock selling snowballed in the face of higher bond yields and spending worries.
The tech-heavy Nasdaq tumbled 4.2% on Friday, its worst daily decline since April 10, 2025, according to Dow Jones Market Data, and its worst week since April. The S&P 500 fell 2.6%, snapping a nine-week winning streak, while the Dow fell 695 points, or 1.4%.
Although the Strait of Hormuz remains effectively closed and under Iranian control, with the war removing more than 10 million barrels a day of Middle Eastern oil from normal trade routes, Brent crude prices have stabilized at around $100 a barrel, far below the $150 to $200 levels some analysts warned about after the war began, Barron's reported.
That's because of several factors, including more oil moving through or around Hormuz than some forecasters initially expected, record U.S. crude and fuel exports, governments releasing hundreds of millions of barrels from emergency reserves, and falling global demand for oil.
JPMorgan predicts that the Strait of Hormuz will reopen this month and expects Brent to remain near $100 a barrel for most of the year. But if the strait stays closed, it says each additional month would add roughly $5 a barrel to its third-quarter forecast for oil prices and $15 to its fourth-quarter estimate as inventories decline.
Meanwhile, retail gasoline prices are averaging $4.174 a gallon on Sunday, down from $4.558 a gallon last month but up from $3.131 a gallon a year ago, according to AAA.
The Organization of the Petroleum Exporting Countries and its allies on Sunday agreed to increase production next month by 188,000 barrels a day, in the fourth-straight production increase. The seven OPEC+ nations said they would continue to closely monitor and assess market conditions, and reaffirmed their "full flexibility to increase, pause or reverse."
The Dow is up 6.8% so far this year, while the S&P 500 is up 7.9%.
The Nasdaq is up 10.6% so far this year.
