U.S. futures dropped on Thursday after President Donald Trump’s televised update failed to offer a definitive timeline for an end to the US-Israeli military action in Iran. Persistent uncertainty about the conflict’s resolution and status of the Strait of Hormuz unsettled both equity and energy markets.
At 4:25 p.m. (Bangkok Time), S&P 500 futures retreated 1.17% and Nasdaq 100 futures shed 1.51%, while contracts for the Dow Jones Industrial Average fell 0.98%.
Addressing the nation on Thursday morning Bangkok time, Trump said that the country was approaching an end to the hostilities, though he emphasized that U.S. forces would attack with significant force against Tehran. In social media communications, the president reported that Iran’s leadership had signaled interest in a truce; however, he made any agreement contingent upon reopening the Strait of Hormuz, a critical passage for global energy supplies.
Trump reiterated that military withdrawal from Iran could occur within two to three weeks, echoing statements he gave to journalists at the White House earlier.
Energy markets responded as benchmark West Texas Intermediate crude on Thursday climbed 6.84% to $106.97 per barrel, while Brent crude advanced 7.32% to $108.56.
The downdraft in futures trading comes at the close of a holiday-shortened week. Investors are also awaiting the release of weekly jobless claims data on Thursday, and the March employment report scheduled for Friday, when markets will be closed for Good Friday.
