➤ Top Iranian commander dies in US airstrike, boosting safe-haven assets.
➤ S&P 500 declines from record high; Treasurys advance.
➤ ISM data shows US manufacturing contracted at fastest pace in 10 years.
➤ FOMC minutes due later.
U.S. stocks declined from a record, alongside global equities, while safe-haven assets rallied as the prospect of all-out war between the U.S. and Iran escalated following the assassination of Iran's leading military commander in a U.S. drone strike.
Qassem Soleimani, who headed the Islamic Revolutionary Guard Corps' elite Quds Force, was killed in a U.S. airstrike at the Baghdad International Airport, the U.S. Department of Defense said, adding that the operation was "aimed at deterring future Iranian attack plans."
Iran's Supreme Leader Ayatollah Ali Khamenei said "severe revenge awaits the criminals" behind the attack and announced three days of national mourning.
The S&P 500 fell 0.7% at about 11 a.m. ET. The benchmark index closed at a record high on Thursday, with shares of Apple Inc. surpassing $300 for the first time.
In Europe, Germany's DAX lost 1.4%, headed for its biggest decline since Dec. 2. The FTSE 100 rose 0.3% while France's CAC 40 lost 0.1. The wider Stoxx Europe 600 declined 0.4%.
In Asia, Hong Kong's Hang Seng index lost 0.3% while the Shanghai SE Composite was little changed. Japanese markets were closed.
Brent crude surged 3.7% to $68.72 per barrel on the ICE Futures Exchange, having previously hit $69.50 a barrel, the highest level since Sept. 16, 2019.
Safe-haven assets gained, with the Japanese yen climbing 0.5% to 107.98 per dollar and gold jumping 1.5% to $1,551.50 per ounce, the highest in more than three months.
Government bonds rallied, with the yield on 10-year Treasurys sliding 7 basis points to 1.81% and the rate on German bunds dropping 6 basis points to negative 0.29%.
The euro was little changed at $1.1171, while the British pound slipped 0.4% to $1.3088.
The Dollar Index was little changed ahead of the release of the Federal Open Market Committee's minutes.
Earlier, a survey from the Institute for Supply Management showed U.S. manufacturing contracted at the fastest pace in 10 years in December 2019 and for the fifth consecutive month.
More from S&P Global Market Intelligence:
Asian banks gain most in latest global systemic importance scores
2020 could bring another wave of regional bank MOEs
The day ahead:
10 a.m. ET – U.S. ISM Manufacturing Index
10 a.m. ET – U.S. Construction Spending
10:30 a.m. ET – U.S. EIA Natural Gas Report
11 a.m. ET – U.S. EIA Petroleum Status Report
11:05 a.m. ET – U.S. Fed's Tom Barkin speaks
1 p.m. ET – U.S. Baker-Hughes Rig Count
1:15 p.m. ET – U.S. Fed's Lael Brainard speaks
1:15 p.m. ET – U.S. Fed's Charles Evans speaks
2 p.m. ET - U.S. Federal Open Market Committee Minutes
3:30 p.m. ET – U.S. Fed's Robert Kaplan speaks