US stocks drop as 6 days of Iran missile strikes rattle markets

US stocks fell in early trading Friday as the US-Iran missile conflict entered its sixth day, with the Islamic Revolutionary Guard Corps launching strikes on US assets across the Middle East.

The IRGC said it attacked a US special operations command center at al-Tanf in Syria in retaliation for the killing of Iranian soldiers in Iranshahr, according to a statement carried by the Tasnim news agency. A Syrian military source told Reuters the attack was near al-Tanf but did not hit the base itself, with no casualties or damage reported.

The selloff was broad-based as the conflict spread beyond direct US-Iran exchanges. Iranian drone and missile attacks were reported in Kuwait, Bahrain, Qatar, Jordan, Iraq, and Oman, according to local officials. Kuwait's army said air defenses were responding to "hostile missile and drone attacks," while Qatar's interior ministry reported one child wounded by shrapnel from interception operations. In Bahrain, the interior ministry urged citizens to head to the nearest safe place after sirens sounded across the country.

The conflict has killed at least 38 people and wounded more than 400 in Iran since the US resumed strikes on June 22, Iran's health ministry said. White House press secretary Karoline Leavitt said Thursday that President Donald Trump was "open to diplomacy," even as US warplanes struck Iranian bridges and airports for a sixth consecutive night. With earnings season underway, investors face the dual risk of geopolitical escalation and corporate profit uncertainty.

Energy stocks outperformed as crude oil prices rose on supply disruption fears, with the Strait of Hormuz emerging as a flashpoint. Iran's IRGC said it targeted a US maritime surveillance radar in Oman, raising concerns about freedom of navigation through the waterway that handles about a fifth of global oil consumption. Defensive sectors including utilities and consumer staples held up better than the broader market, while technology and consumer discretionary names led the decline.

Gold rose as investors sought safe-haven assets, and Treasury yields declined on increased demand for government debt. The VIX, Wall Street's fear gauge, climbed as traders increased hedging activity, with trading volume running above the 20-day average. The dollar strengthened against major currencies as the risk-off mood drove capital toward the US currency.

The US has bombed Iran for six consecutive nights, targeting Iranshahr airport, bridges in the southern Hormozgan province, and a neighborhood in Bandar Abbas. At least seven civilians were killed in the latest strikes, including one child and three women, according to Iranian state media. Iran's health ministry reported that nine children and 22 women were among the more than 400 wounded since the campaign began.

The next trigger for markets will be any further escalation or de-escalation signals from Washington or Tehran. With the White House indicating openness to talks even as bombing continues, the path forward remains uncertain for portfolio managers navigating both geopolitical risk and the upcoming earnings reports.

This article is for informational purposes only and does not constitute investment advice.