Iran has reportedly rejected another US ceasefire offer, with the conflict between the two threatening to spread to other parts of the Persian Gulf and further disrupt key global oil supplies. US President Donald Trump is imposing new double-digit tariffs on several countries, while the artificial intelligence boom is helping chipmaker Intel deliver better-than-expected quarterly sales.

1. Futures Rise

US stock futures rose on Friday after a selloff in the previous session, triggered by the potential for a wider conflict in the Middle East, which led to a fresh surge in oil prices. By 10:34 a.m., Dow futures were up 197 points, or 0.4%, S&P 500 futures were up 15 points, or 0.2%, and Nasdaq 100 futures were up 23 points, or 0.1%.

Wall Street's major indexes fell on Thursday after Iran-backed Houthi rebels in Yemen claimed to have attacked Saudi tankers in the Red Sea. These strikes, along with ongoing exchanges of fire between the US and Iran, led to Brent crude futures, the global oil benchmark, briefly exceeding $100 per barrel.

This has fueled concerns about a surge in inflation driven by rising energy prices, which could persuade central banks, including the Federal Reserve, to tighten monetary policy. Given these expectations, US Treasury yields rose, putting pressure on stocks.

"The continued rise in energy prices is beginning to weigh on financial markets more broadly, beyond just the bond market. While central banks continue to take a measured approach to the new surge in energy prices, there is still plenty of room for further market turbulence if the conflict between the US and Iran continues to escalate," Jonas Goltermann, chief market economist at Capital Economics, wrote in a note.

2. US ends latest round of attacks on Iran

The US military said it had completed its 13th consecutive night of strikes on Iranian targets early Friday morning, as hostilities between Washington and Tehran showed no signs of abating. American forces struck Iranian military targets, including drone depots and coastal observation posts, in an attempt to undermine Tehran's ability to target commercial shipping in the Strait of Hormuz.

Meanwhile, Iran rejected President Trump's new ceasefire proposal, which was delivered to Tehran by Iraq, The New York Times reported. Iran's chief negotiator told local media that Tehran still sees problems with the "American approach."

The latest developments come as the Houthis claim to have closed the Bab el-Mandeb Strait, a critical waterway for global shipping connecting the Red Sea to the Gulf of Aden. On Thursday, the group claimed to have attacked two Saudi tankers in the region, though the Saudi government has confirmed only one strike. Faced with the prospect of disruptions to crude oil supplies in both the Straits of Hormuz and Bab el-Mandeb, oil prices have surged in recent days, reaching levels not seen since May. By 10:13 a.m., Brent crude futures had fallen 1.8% to $98.90 per barrel, but were still well above the roughly $70 mark reached after the framework—and seemingly short-lived—ceasefire agreement between the US and Iran in June.

3. Trump's New Double-Digit Tariffs

Beyond the war, Trump on Friday imposed new double-digit tariffs on imports from 60 countries, the White House's latest attempt to regain control of its aggressive international trade policy, which was struck down in court.

The tariffs, ranging from 10% to 12.5%, replace the expired 10% global levy, with the Trump administration arguing that the levies are necessary because US trading partners have failed to adequately enforce bans on goods produced by forced labor.

Notably, two major US trading partners—Canada and the European Union—are subject to the 10% tariffs under this agreement, despite both having laws prohibiting the import of goods produced by forced labor. However, according to The New York Times, Trump administration officials said neither has effectively enforced these rules. Trump previously imposed 10% global tariffs after the Supreme Court struck down his massive "Emancipation Day" levies in a landmark February ruling. To justify the new levies, the president cites a section of the 1974 U.S. Trade Act that allows the White House to impose import taxes and other sanctions on countries deemed to engage in "unjust" or "discriminatory" trade practices.

Media reports indicate that even higher tariffs could be imposed in the coming weeks, noting that the Trump administration has proposed additional levies to offset what it calls unfair trade practices in the manufacturing sector.

4. Intel Shares Rise

Intel shares rose in over-the-counter trading after the American chipmaker reported second-quarter results that beat Wall Street expectations and signaled progress in the company's ongoing restructuring efforts. Along with a 25% sales growth, which beat estimates of 11%, Intel forecast its current-quarter revenue to be between $15.8 billion and $16.8 billion—also above expectations.

CEO Lip-Bu Tan, tasked with transforming the company, attributed "unprecedented demand for computing power" to artificial intelligence, adding that Intel is now well positioned for "sustainable growth."

Intel will be a key beneficiary of the AI ​​boom, given that it produces the chips needed for advanced AI agents that can perform tasks for users. The company is also one of the few U.S. operators of chip factories, which prompted the U.S. government to acquire a stake in the business. The Trump administration is particularly interested in reducing the U.S.'s dependence on Asian semiconductor manufacturers. 

5. PMI Ahead

In other areas, amid relatively calm economic data, S&P Global's preliminary assessment of US manufacturing and services activity for July will take center stage on Friday.

The S&P Composite Purchasing Managers' Index for June was 52.2, driven by a surge in the services sector driven by the FIFA World Cup, co-hosted by the US, Canada, and Mexico.

A reading above 50 indicates expansion.

Manufacturing activity also rose for the fourth consecutive month, as businesses rush to build up inventories to combat potential shortages and higher prices due to the war in Iran.