Oil prices climbed sharply and stock futures sunk early Thursday after President Donald Trump vowed Wednesday night to strike Iran “extremely hard” over the next two to three weeks and offered no clear path to end a war now in its second month.
U.S. West Texas Intermediate crude futures rose as much as 10% to $110.21 a barrel. Brent crude futures climbed 8% to above $109 a barrel. Futures tied to the Dow Jones Industrial Average slid 718 points, or 1.5%, while S&P 500 futures dropped 1.7% and Nasdaq 100 futures fell 2.1%.
Trump, speaking in a prime-time address from the White House on Wednesday, said the U.S. would “finish the job” quickly but also pledged to bomb Iran “back to the stone ages.” He said diplomatic discussions with Tehran remained ongoing and that military aims would be completed “very shortly,” while stopping short of providing a concrete exit plan. Iran has denied that talks are taking place.
The address reversed a two-day rally in U.S. stocks that had been driven by optimism over a possible end to the war. Earlier Wednesday, Trump posted on Truth Social that Iran’s “New Regime President” had asked for a ceasefire — a claim Iran’s foreign ministry denied — briefly sending oil prices lower. Trump said the U.S. would only consider the offer if the Strait of Hormuz was “open, free, and clear.”
The strait has effectively been closed to oil and gas traffic since the U.S.-Israel military operation against Iran began Feb. 28. In 2024, 84% of crude oil and 83% of liquefied natural gas shipped through the strait went to Asian markets, according to the U.S. Energy Information Administration.
Trump suggested again in his address that reopening the waterway was a problem for other countries to resolve. “This is now something for those who take oil through the Strait to sort out for themselves,” Giles Alston, a political risk analyst at Oxford Analytica, said on CNBC, characterizing the administration’s position.
Markets had anticipated a clear signal from the president in either direction, according to George Efstathopoulos, portfolio manager at Fidelity International. “Clearly we seem to be on the latter path right now,” he told CNBC’s “Squawk Box Asia,” referring to further escalation and prolonged uncertainty.
Markets are closed Friday for Good Friday. The March jobs report is set for release that morning.
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