Latest developments in Iran conflict: Israel and Iran exchange fire, conflict enters its sixth day

Investing.com - Thursday, Israel and Iran launched airstrikes against each other, entering the sixth day of conflict across the Middle East.

Use InvestingPro to track the market impact of the Iran conflict

The large-scale barrage launched by Israel targeted infrastructure of Iranian authorities in Tehran. Earlier, reports indicated Iran fired missiles at Israel, triggering air raid alerts in Tel Aviv and Jerusalem.

There were also reports of more explosions across the wider Gulf region, including Qatar and Bahrain, while Saudi Arabia said it intercepted missiles and drones.

Azerbaijan became the latest neighboring country to be drawn into the expanding conflict. The country, located in northern Iran, reported drone attacks originating from Iranian territory. On Wednesday, media reported that a U.S. destroyer in the eastern Mediterranean shot down a missile launched from Iran heading toward southern Turkey.

Although the U.S. has been working with Israel to counter Iran, it stated that Iran’s missile launches have decreased by 86% over four days, even as recent attacks continue.

According to Reuters, Iran’s Kurdish militia groups based mainly in Iraq have held consultations with U.S. officials regarding potential attacks on security agencies in western Iran. The agency added that Iranian intelligence agencies are cracking down on “separatist groups” attempting to enter through the country’s western border.

Republican senators block measures to limit Trump’s war powers

There are little signs of de-escalation, as Republican senators blocked a measure that would restrict President Donald Trump’s ability to continue military actions without congressional approval, highlighting this trend.

Democrats have been trying to use this measure to give lawmakers a stronger stance in weighing the conflict, while White House officials say the conflict could continue indefinitely.

In a 53-47 vote, the Senate rejected a resolution that would require Trump to end any offensive against Iran or the Iranian government or military without a formal declaration of war or congressional authorization.

As the Middle East conflict continues to escalate, concerns about disruptions to supplies from this major oil-producing region have grown, pushing oil prices higher and extending this week’s rally.

Brent crude futures rose 2.9% to $83.75 per barrel, while U.S. WTI crude futures increased 3.2% to $77.08 per barrel.

Iran has targeted oil tankers in the Strait of Hormuz, through which about one-fifth of the world’s oil and liquefied natural gas flows, effectively closing this critical bottleneck off Iran’s southern coast.

These two benchmark indices have risen for five consecutive trading days, with Brent crude reaching its highest level since July 2024, despite a pullback after President Donald Trump hinted that the U.S. could escort and insure ships attempting to pass through the strait.

Thursday, U.S. stock index futures edged lower as investors assess the outlook for the ongoing sixth day of the Iran conflict.

As of 03:10 a.m. Eastern Time (16:10 Beijing time), Dow futures were down 285 points or 0.6%, S&P 500 futures fell 29 points or 0.4%, and Nasdaq 100 futures declined 115 points or 0.5%.

On Wednesday, major Wall Street indices rose, while oil prices and bond markets remained moderate, suggesting that the turbulent financial markets caused by Middle East hostilities may stabilize.

At the close, the blue-chip Dow Jones Industrial Average rose 0.5%, the benchmark S&P 500 increased 0.8%, and the tech-heavy Nasdaq Composite gained 291 points or 1.3%. Capital Economics analysts noted that activity data from the U.S. key services sector points to a possible “re-acceleration” of the underlying economy, which helped boost market sentiment.

Asian stock markets are seen as particularly vulnerable to disruptions in oil and natural gas supplies through the vital Strait of Hormuz in southern Iran, but also show signs of stabilization. The Korea Kospi index led gains after experiencing such a significant decline on Wednesday that trading had to be temporarily halted.

Asian airline stocks rebounded especially as more Middle Eastern flights delayed by violence resumed.

European markets hovered near flat levels. Like Asia, the region heavily depends on energy imports through the Strait of Hormuz, raising concerns that any surge in energy prices could push inflation higher.

(This is a developing story. Please check back for updates.)

This article was translated with the assistance of artificial intelligence. For more information, see our Terms of Use.