U.S. equity futures fell on Thursday, as oil prices surged amid escalating conflict in the Middle East, while investors weighed quarterly results from two of the largest companies in the world. Futures tied to the Dow Jones Industrial Average lost 601 points, or 1.2%. S&P 500 futures dropped 1.1%, while Nasdaq 100 futures lost 1.5%. Oil prices put more pressure on stocks, as they soared after Yemen’s Tehran-backed Houthi militant group claimed attacks on two Saudi Arabian tankers in the Red Sea, fueling concerns about an expansion of the conflict in the Middle East. Prices also moved higher after U.S. President Donald Trump threatened to bomb Iranian infrastructure. “From this point forward, any time the Islamic Republic of Iran shoots at a ship in the Strait of Hormuz, whether it be by missile, rocket, drone, or any other device or weapon, the United States will bomb and destroy ONE BRIDGE OR POWER PLANT, including those located next to, or in, the Capital City of Tehran,” the president wrote in a post on Truth Social. Indeed, the strikes between the U.S. and Iran show no sign of easing, and the Houthis said they targeted two oil tankers in the Red Sea yesterday, raising fears that the conflict is widening. So that’s pushed oil prices up to a 7-week high and has also fueled speculation about more rate hikes. “Equity futures were also weighed down by a 5% slide in Alphabet shares after the Google parent lifted its forecast for 2026 capital expenditures to as high as $205 billion, pointing to strong artificial intelligence demand. The increase comes as investors have grown more cautious in recent months about hyperscalers’ spending around the AI effort. Additionally, Tesla tumbled more than 8%, likewise hitting its session low, after the electric vehicle maker posted a big earnings miss for the second quarter. The company’s operating expenses also rose faster than revenue during the period. U.S. Treasury yields advanced on Wednesday, following oil prices higher, as traders await jobless claims data due later in the session. The yield on the 10-year U.S. Treasury note — the key benchmark for U.S. government borrowing — was up more than 1 basis point to 4.675%. The 2-year Treasury note yield, which more closely tracks short-term Federal Reserve interest rate policy, rose more than 1 basis point to 4.317%. The longer-dated 30-year Treasury bond yield was higher by more than 1 basis point to 5.161%. Mainland China and Hong Kong stocks rose Thursday amid broad gains in Asian markets. Hong Kong’s Hang Seng index was up 1.02% in the last hour of its trade. The gains in Hang Seng were led by the basic materials and industrials sectors, up 2.9% and 2.3%, respectively. Mainland China’s CSI 300 closed 0.23% higher at 4,728, with declines in real estate and tech capping gains. South Korea’s KOSPI led gains in Asian markets on Thursday, ending the day at 4.40% higher at 7,096.89. Samsung and SK Hynix, which are Kospi heavyweights, rose 3.65% and over 4%, respectively. Over in Japan, the Nikkei 225 closed 0.46% higher at 66,422.60, supported by financial stocks. Mitsubishi UFJ gained 2.24%, Mizuho Financial added 2.78%, and Nomura gained 1.34%. Australia’s benchmark S&P/ASX 200 rose 0.18% higher to 8,839. Brent crude futures for July delivery gained 6% to trade above $99 per barrel after briefly hitting $100 earlier in the day, while U.S. West Texas Intermediate crude futures advanced 5% to above $91 per barrel. Both Brent and WTI were trading at their highest levels since before the U.S. and Iran reached an agreement to bring their war to an end last month. “Inflation has remained top of the agenda for markets this morning, with Brent crude moving up … as the Middle East escalation continues,” Deutsche Bank’s Jim Reid wrote in a note on Thursday morning. Gold retreated on Thursday, as the intensifying ​Middle East conflict ​drove up oil ​prices and supported investor concerns that inflationary pressures could push the U.S. Federal Reserve to raise interest rates later this year. Spot gold dropped 0.9% to $4,091.24 per ounce, having hit its highest level since ⁠July 7 at $4,165.87 per ounce on Wednesday. U.S. gold futures for August delivery slid 1.4% to $4,093.80. “Markets have shown they are not prepared to give up the $4,000 level without a fight,” ‌said Nikos Tzabouras, senior market analyst at Jefferies-owned Tradu.com.