The US and Israel launched an air campaign against Iran on Saturday, striking Tehran and killing Iranian Supreme Leader Ali Khamenei. In response, Iran and its proxy Hezbollah retaliated, drawing the wider Gulf region into the escalating conflict. At 02:41am ET, Dow E-minis were down 494 points or 1.01%, S&P 500 E-minis were down 72.5 points or 1.05%, while Nasdaq 100 E-minis were down 332.75 points or 1.33%. Travel and airline stocks, however, took a beating amid flight cancellations, higher jet-fuel costs and sweeping Middle East airspace closures. Markets will also be looking out for fresh signals from the Fed, especially given recent divisions over the path of rates.

Source: The Edge Markets March 03, 2026 08:45 UTC