U.S. military conducts strikes against Iranian rocket launchers in Strait of Hormuz

What happened

The U.S. military conducted strikes against Iranian rocket launchers in the Strait of Hormuz, with reports indicating that Iran fired back early Monday following the initial U.S. action.

Following the military activity, S&P 500 futures and Dow Jones Industrial Average futures both declined 0.2% on Monday.

Why it matters

The decline in U.S. stock futures reflects market sensitivity to the renewed military engagement in the Strait of Hormuz, a critical maritime chokepoint.

Context

The U.S. military action on Monday was the first such engagement in the region in several weeks.

The U.S. strikes were conducted in response to Iranian attacks on ships and U.S. military personnel, as part of an effort to limit Iran's military capabilities in the region.