03:55 PM EDT, 06/03/2026 (MT Newswires) -- US equity indexes fell while crude oil futures rose as fresh fighting in the Middle East derailed progress in peace talks between Washington and Iran.

The Nasdaq Composite dropped 0.7% to 26,902.1 ahead of Wednesday's close. The Dow Jones Industrial Average fell 1% to 50,806.2, and the S&P 500 slid 0.5% to 7,569.9.

No progress has been made in peace negotiations, Al Jazeera cited Iran's Foreign Minister Abbas Araghchi as saying, referring to the talks between Tehran and Washington. The contact with the United States has not been cut off, Araghchi reportedly said.

The US and Iran exchanged heavy fire on Tuesday evening after the US struck an empty oil tanker it said was attempting to breach its blockade, according to The Wall Street Journal. That set off a string of attacks by both sides, with Iran striking US bases in Kuwait and Bahrain, the WSJ reported.

Kuwait came under a barrage of ballistic missiles and drones on Wednesday that shut its international airport, killed one person, and injured dozens more, the WSJ said. Iran's Revolutionary Guard said retaliatory strikes "should serve as a lesson" for the US, according to a report from Al Jazeera.

Brent crude futures marched 2.1% higher to $97.97, and West Texas Intermediate crude oil futures added 2.5% to $96.06.