U.S. stock futures fall after airstrike kills Iranian commander

SYDNEY (Bloomberg) - U.S. stock-index futures fell after a U.S. airstrike near Baghdad international airport killed a top Iranian commander.

S&P 500 Index futures contracts expiring in March retreated as much as 0.7% after the attack that killed Qassem Soleimani, the Iranian general who led the Revolutionary Guards’ Quds force. Dow Jones Industrial Average contracts were down as much as 0.7%, while those on the Nasdaq 100 also shed as much as 0.7%.

Oil spiked on news of the strike, with futures in New York and London surging more than 4%. Gold also surged, while the dollar weakened against the yen.

“This is more than just bloodying Iran’s nose. This is an aggressive show of force and an outright provocation that could trigger another Middle East war,” Stephen Innes, chief Asia market strategist at Axitrader, wrote in a note. “Get the defensive strategy tool kit ready as you will likely need it through the day.”

The S&P 500 Index closed 0.8% higher in New York on Thursday, with Apple, Alphabet and Nike all reaching fresh records.