HONG KONG (AP) — Stocks rose Wednesday in Europe and Asia as oil prices retreated slightly despite a spate of attacks by Iran against its Gulf neighbors.

US futures rose 0.5% after a session of moderate gains on Wall Street ahead of the Federal Reserve’s interest rate decision later in the day. As higher oil prices fuel other types of inflation, the Federal Reserve is widely expected to keep rates unchanged.

Concerns about global oil and gas supplies and rising prices continue to cloud global markets, although Brent crude, the international standard, fell slightly to $103.14 a barrel, down from more than $106 on Monday.

Benchmark U.S. crude oil fell 1.6% to $94.67 per barrel.

Iran lashed out with multiple attacks on its Gulf neighbors and Israel on Wednesday following the assassination of one of its top leaders in an airstrike, using some of its latest missiles to evade air defenses and killing two near Tel Aviv.

Police and first responders work at a scene where an apartment was damaged by a missile attack, on the outskirts of Tel Aviv, Israel, on March 18, 2026.
Police and first responders work at a scene where an apartment was damaged by a missile attack, on the outskirts of Tel Aviv, Israel, on March 18, 2026.

Ilia Yefimovich/News via Getty Images

But markets appear to have taken the latest rallies in stride.

Germany’s DAX rose 0.7% to 23,899.71 and Paris’ CAC 40 rose 0.9% to 8,045.19. Britain’s FTSE 100 rose 0.2% to 10,427.12.

During Asian trading, Tokyo’s Nikkei 225 gained 2.9% to 55,239.40 after the government reported stronger-than-expected exports in February.

In South Korea, the Kospi rose 5% to 5,925.03.

Lower oil prices are a boon for large oil importers like Japan and South Korea.

Hong Kong’s Hang Seng reversed early losses, rising 0.6% to 26,025.42, while the Shanghai Composite Index also recovered, gaining 0.3% to 4,062.98.

Australia’s S&P/ASX 200 rose 0.3% to 8,640.60.

Taiwan’s Taiex added 1.5% and India’s Sensex advanced 1%.

Global oil flows remain largely constrained, ING Bank analysts Warren Patterson and Ewa Manthey wrote in a research note Wednesday, even as hopes grew that Iran could allow more ships to pass through the Strait of Hormuz, a key waterway for global oil and gas transportation.

About a fifth of the world’s crude oil passes through the strait, which has been largely closed as Iran blocks ships linked to the United States, Israel and their allies.

U.S. stocks were steady on Tuesday, as the S&P 500 rose 0.3% and the Dow Jones Industrial Average rose 0.1%. The Nasdaq composite added 0.5%.

In other trading early Wednesday, the US dollar fell to 158.96 Japanese yen from 159.01 yen. The euro fell to $1.1536 from $1.1542.