Markets brace for all-out war in Iran as former NATO commander warns Suez Canal could be next

Key Points:

• Dow Jones futures fell 61 points (0.12%) while S&P 500 futures dipped 0.05%, and Nasdaq futures rose slightly by 0.08%; oil prices surged with West Texas Intermediate up 2.75% to $84.76 per barrel and Brent crude up 3.2% to $90.92.
• Two U.S. troops were killed in Jordan from an Iranian attack, another is missing, and a third died in Iraq disposing of an Iranian drone, marking a significant escalation that may cross President Trump's previously stated red line.
• Despite ongoing U.S. airstrikes against Iran, efforts to secure an alternative shipping corridor through the Strait of Hormuz have failed, allowing Iran to maintain control and leverage amid dwindling global oil supplies.
• Retired Adm. James Stavridis outlined three difficult options for the U.S.: withdrawing, escalating to a large-scale conflict including ground troops, or continuing current limited strikes combined with economic pressure while keeping negotiation channels open.
• Stavridis warned that Iran or its proxies might target the Suez Canal next, a critical global shipping route, potentially using groups like the Houthis, signaling a broader regional threat beyond the Strait of Hormuz.