03:56 PM EDT, 07/15/2026 (MT Newswires) -- (Updates with index/price moves and geopolitical news from the first paragraph.)

US equity indexes edged up as a boost from an unexpected drop in producer price inflation was partially offset by Washington setting the stage for complex operations in Iran, which has signaled its allies could shut the maritime gateway to the Red Sea.

The Nasdaq rose 0.4% to 26,221.8, the S&P 500 climbed 0.2% to 7,559.1, and the Dow Jones Industrial Average advanced 0.2% to 52,611.4 ahead of Wednesday's close. All three gauges briefly traded moderately lower earlier in the session. Communication services and consumer discretionary topped the gainers, while utilities led the decliners.

The US Producer Price Index fell 0.3% in June following a 0.6% increase in May, below the flat consensus in a Bloomberg-compiled survey. Excluding food and energy, core PPI rose 0.2%, slower than the 0.3% gain expected and a 0.1% rise in May. PPI was up 5.5% year-over-year in June, versus the 6% gain in May, while core PPI climbed 4.7%, up from 4.6% in May.

Most US Treasury yields fell in the final leg of trading, with the 10-year down four basis points to 4.55% and the two-year declining 6.3 basis points to 4.13%.

Recent waves of US strikes on Iran aimed at forcing open the Strait of Hormuz are also targeting Iranian military capabilities that the US would want to destroy before executing more complex operations against Iran, three US officials told Reuters.

The officials, who were granted anonymity to discuss military matters, said the strikes effectively strengthen Trump's additional military options.

Iran currently has no plans for negotiations with the US, CNN reported, citing the country's foreign ministry spokesperson, who added that Tehran would not adhere to any agreement if Washington "breaches its obligations."

Iran is now signaling it could use Yemen's Houthi allies to shut the Bab el-Mandeb gateway to the Red Sea, opening a new front against Washington and putting two of the world's most important energy arteries at risk, a separate report from Reuters said. As US strikes deepen inside Iran and Houthi attacks escalate in tandem, analysts said Tehran is widening the conflict and seeking to increase pressure on Washington by extending the threat to global trade and energy supplies beyond the Gulf, the news report added.

The front-month global benchmark North Sea Brent rose 0.4% to $85.05 a barrel, and the US West Texas Intermediate climbed 0.5% to $79.71 a barrel, albeit off session highs.