US futures retreated on Thursday, reversing momentum from the prior session, as traders navigated continued uncertainty surrounding the Middle East and the potential for de-escalation in the region. Investors remained cautious, impacting market sentiment, while energy futures saw a notable jump.
At 4:38 p.m. (Bangkok Time), futures linked to the S&P 500 fell 0.70%, and those tracking the Nasdaq 100 declined by 0.83%. Dow Jones Industrial Average futures moved 0.61% lower.
The pullback followed reports of mixed messaging from both Washington and Tehran. President Donald Trump stated that Iran was eager to negotiate an end to hostilities, a claim countered by remarks from Iran’s foreign minister, who signaled Tehran’s reluctance to enter talks despite reviewing a US-proposed resolution.
Adding to market unease, Iranian state media reported the country would dismiss the U.S. ceasefire proposal, offering instead its own five-point plan, which included terms that would place the strategic Strait of Hormuz under Iranian control. These developments intensified investor caution, with hopes for a swift reinstatement of commercial shipping through the region remaining unresolved.
The geopolitical turmoil lifted energy markets, as on Thursday, West Texas Intermediate crude climbed 3.62% to $93.59 per barrel, and Brent crude advanced 3.34% to settle at $100.51 per barrel. Despite this week’s positive performance in major equity indices after sharp declines last week—when Middle East risks escalated—market strategists warn that investors may be underestimating the likelihood or timing of a resolution.
Markets will also monitor upcoming initial U.S. jobless claims data covering the week ending March 21 for additional economic signals.
