US stock futures slipped as traders weighed developments in the US-Iran war against the outlook for Federal Reserve policy.

Futures tied to the Dow (YM=F), the S&P 500 (ES=F) and the Nasdaq 100 (NQ=F) each wavered below the flatline.

During Tuesday’s session, the Dow (^DJI) dropped more than 100 points after briefly reaching a record intraday high. The S&P 500 (^GSPC) fell 0.5%, and the Nasdaq Composite (^IXIC) lost 1.2%, with semiconductor stocks leading the decline.

Markets are digesting a sharp escalation in Iran tensions after American forces carried out a “series of powerful strikes” against Iran late Tuesday in response to attacks on three commercial vessels in the Strait of Hormuz.

Energy markets have been shaken after the Treasury revoked a license that had allowed Iran to export oil globally, adding to concerns over potential supply disruptions. Crude prices climbed more than 2%, with West Texas Intermediate (CL=F) trading above $72 a barrel and Brent (BZ=F) jumped over 3% to trade at 74$.

SpaceX stock dropped below its IPO price after inclusion into the Nasdaq allowed early investors to offload shares to funds. However, institutional funds still hold bullish opinions after initiating coverage. JPMorgan Chase has set a price target of $225 with Morgan Stanley setting a Street-high $300 target.

Attention now shifts to Wednesday afternoon’s release of minutes from the Fed’s June meeting. Investors will parse the document for clues about policymakers’ thinking after the Fed held interest rates steady at Chairman Kevin Warsh’s first meeting.