(Updates with index/price moves and company/geopolitical news from the first paragraph.)
US equity indexes traded mixed as government bond yields followed crude oil prices higher and investors awaited quarterly results from mega-caps Alphabet (GOOG, GOOGL) and Tesla (TSLA).
The Nasdaq Composite fell 0.3% to 25,756.3 ahead of Wednesday's close. The S&P 500 slipped less than 0.1% to 7,507.8, while the Dow Jones Industrial Average leaned slightly higher to 52,254.6.
Alphabet and Tesla, both a part of the so-called Magnificent-7 group of stocks with a significant index sway, will report after the bell on Wednesday.
In geopolitical news, the US will destroy an Iranian bridge or power plant, including those in and around Tehran, every time it attacks ships in the Strait of Hormuz, President Donald Trump said in a social media post on Wednesday.
Iran's Foreign Minister Abbas Araghchi posted on X, formerly Twitter, saying "our defense doctrine is clear: eye for an eye."
"Any aggression against Iran, including our infrastructure, will compel a powerful and decisive response," he posted on Wednesday. "Those who contribute to such aggression, whatever the kind of support, will also be considered as legitimate targets."
Seven tankers have changed course in the Red Sea to avoid the Bab el-Mandeb Strait since the Houthis' threat on Tuesday to block Saudi oil exports, Reuters reported. The Iran-aligned Houthis have reportedly completed preparations to target vessels near the Bab el-Mandeb Strait, which connects the Red Sea to the Gulf of Aden and Arabian Sea. The Bab el-Mandeb Strait is an alternative route to the Strait of Hormuz, which remains effectively closed due to tensions between the US and Iran.
The front-month US West Texas Intermediate climbed 3.1% to $86.97 a barrel, and global benchmark North Sea Brent jumped 3.5% to $94.22 a barrel.
US Treasury yields rose, extending gains from Tuesday. The 10-year marched 3.1 basis points higher to 4.66%, its strongest level in a month. The two-year jumped 4.1 basis points to 4.3% after yields hit the highest in 52 weeks.