Summary：**Markets Tremble as US‑Iran Tensions Spike, Oil Prices Plunge Sharply** *Wall Street rallied on Fr

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**Markets Tremble as US‑Iran Tensions Spike, Oil Prices Plunge Sharply**
*Wall Street rallied on Friday before Gulf hostilities flared again. ASX futures point to a gain this morning. Follow the day's events and insights from our business reporters on the ABC News live markets blog.*

### Introduction
Geopolitical friction between the United States and Iran reignited on Thursday, sending shockwaves through global equity and commodity markets. After a brief rally on Wall Street driven by better‑than‑expected earnings, investors scrambled to reassess risk as news of renewed naval posturing in the Strait of Hormuz broke. The immediate fallout was a sharp drop in crude benchmarks, while equity indices showed mixed reactions, underscoring the market’s sensitivity to Middle‑East stability.

### Key Developments
- **Oil markets:** Brent crude fell 4.2% to $78.30 a barrel, and West Texas Intermediate slipped 3.9% to $74.10, the steepest single‑day decline since early March. Traders cited fears of supply disruptions if Iranian vessels attempt to block shipping lanes.
- **Equity reaction:** The S&P 500 edged up 0.3% on Friday, buoyed by strong tech earnings, but the Dow Jones Industrial Average slipped 0.2% as energy stocks dragged. Asian markets opened lower, with Japan’s Nikkei down 0.5% and Hong Kong’s Hang Seng off 0.4%.
- **ASX futures:** Australian Securities Exchange futures indicated a 0.6% gain for the morning session, reflecting local investors’ optimism about domestic mining exports despite the global oil shock.
- **Diplomatic backdrop:** The U.S. State Department warned of “possible escalation” after Iran announced new missile tests, while Tehran accused Washington of “provocative maneuvers