New York: Oil prices surged more than 10 per cent on Thursday while global markets declined after US President Donald Trump announced plans to escalate military action against Iran in the coming weeks.
Futures for the S and P 500 dropped 1.5 per cent before the opening bell, while the Dow Jones Industrial Average futures fell 1.4 per cent and Nasdaq futures slid 2 per cent. Thursday marks the final trading day of the week ahead of the Good Friday break, with markets yet to register a weekly gain since the conflict began in late February.
Oil prices spiked sharply following Trump’s address, with benchmark US crude rising $10.11 to $110.24 per barrel, surpassing Brent crude, which climbed over 8 per cent to $109.38. The surge comes amid disruptions linked to the near closure of the Strait of Hormuz, a vital route for global energy supplies.
In his first national address since the outbreak of the war, Trump said US “core strategic objectives are nearing completion” but did not outline a clear path to ending hostilities or resolving supply disruptions.
Meanwhile, Iran signalled continued resistance. Military spokesman Lt Col Ebrahim Zolfaghari said Tehran retains undisclosed stockpiles of weapons and production facilities, asserting that targeted sites were “insignificant.”
Explosions were reported in Dubai shortly before Trump’s speech, as air defence systems intercepted an Iranian missile barrage.
Market sentiment remained fragile, with analysts pointing to the absence of clarity on a potential ceasefire. “What the market wants is a clear outline for the ceasefire,” said Takashi Hiroki, chief strategist at Monex in Tokyo.
In corporate developments, General Motors shares fell more than 2 per cent after reporting a nearly 10 per cent decline in first-quarter sales, dragging other automakers lower.
European markets were also in the red by midday, with Britain’s FTSE 100 down 0.6 per cent, France’s CAC 40 falling 1.3 per cent, and Germany’s DAX dropping 2.4 per cent.
Asian markets closed lower, with Japan’s Nikkei 225 declining 2.4 per cent, South Korea’s Kospi falling 4.5 per cent amid rising inflation, and Hong Kong’s Hang Seng and China’s Shanghai Composite each slipping 0.7 per cent. Australia’s ASX 200 dropped 1.1 per cent, while Taiwan’s Taiex lost 1.8 per cent.
Precious metals also declined, with gold falling 3.9 per cent to $4,627 per ounce and silver dropping 6.9 per cent to $70.85.
With PTI inputs