(Updates with index/price moves and geopolitical news from the first paragraph.)
US equity indexes fell after Brent crude oil futures surpassed $100 a barrel and government bond yields jumped after the Treasury Department unveiled plans to triple government debt buybacks to as much as $6 billion.
The Nasdaq Composite declined 0.6% to 26,252.1, the S&P 500 retreated 0.4% to 7,640.2, and the Dow Jones Industrial Average dropped 0.6% to 52,456.9 ahead of Wednesday's close.
Iran is ready for a more intense war and will escalate counterstrikes if the US continues attacking its territory and infrastructure, Bloomberg reported, citing a senior official from the Islamic Republic. Tehran has no intention of backing down in the face of an American naval blockade and attacks on its oil tankers, the official told the news outlet. Economic pain may be increasing, they said, but the country's leaders see the war with the US as posing an existential threat that leaves them little choice but to keep fighting.
The front-month US West Texas Intermediate crude oil contract surged 3.6% to $96.39 per barrel, and global benchmark North Sea Brent soared 3.5% to $101.34 per barrel.
The Treasury Department plans to buy back up to $6 billion of government debt, CNBC reported. The move triples the normal buyback operation, following an announcement on Aug. 19 from Treasury Secretary Scott Bessent that the department would at least double the normal amount for already issued securities.
Most US Treasury yields rose, with the 10-year yield up 3.3 basis points to 4.84%, trading close to its highest since late 2023.