Futures turned lower after a report from Iran’s Fars news agency said two missiles had hit a US warship intending to pass through the Strait of Hormuz.

They later trimmed losses after an Axios reporter posted on X that a senior US official had denied the attack.

The fluctuation highlighted the degree to which investors have become sensitive to headlines tied to the conflict, particularly as they weigh geopolitical risks against a strong earnings backdrop.

While strong quarterly reports from corporate America have given markets plenty to cheer in recent weeks, the US-Iran war remains a major overhang.

The conflict, now in its third month, has continued to weigh on the global economy as oil prices stay elevated and the risk of renewed hostilities persists.

At 6:49am, Dow E-minis fell 189 points, or 0.38%, S&P 500 E-minis were down 6.5 points, or 0.09%, and Nasdaq 100 E-minis lost 5.25 points, or 0.02%.

Oil prices rose 3.7% and were above $110 a barrel.

“Markets can look through the fog of war if the fog is likely to lift within a reasonable amount of time,” said Brian Jacobsen, chief economic strategist at Annex Wealth Management.

“The key is recognising that what is happening is for now, not forever. That’s easy to forget when you’re living through the ‘for now’ part,” Jacobsen said.

Meanwhile, Berkshire Hathaway reported on Saturday that it was a net seller of stocks for the 14th straight quarter.

The conglomerate, often viewed as a bellwether of the US economy, is closely watched for its insight into valuations and broader market conditions.

Separately, shares of GameStop dipped 4% and eBay rose 9.5% in premarket trading after the video game retailer unveiled a proposal to buy eBay for about US$56 billion in a cash-and-stock deal.

Shares of logistics firms FedEx and United Parcel Service fell more than 2% each after Amazon.com said on Monday it was rolling out “Amazon Supply Chain Services”, opening up its logistics network for other businesses to use.