The zebrafish EGF-CFC gene one-eyed pinhead (oep) is required zygotically f
or the formation of the ventral neuroectoderm, endoderm, and prechordal pla
te. Here we report that embryos lacking both maternal and zygotic Oep activ
ity are defective in germ layer formation, organizer development, and the p
ositioning of the anterior-posterior axis. An identical phenotype is displa
yed by double mutants for the nodal-related genes squint and cyclops. Mutat
ions in oep eliminate the response to Squint and Cyclops overexpression but
are suppressed by expression of Activin and activated forms of the type I
receptor ActRIB and Smad2. Expression of the murine EGF-CFC gene cripto res
cues oep mutants. These results suggest a conserved role for EGF-CFC protei
ns as essential extracellular cofactors for Nodal signaling during vertebra
te development.