U.S. futures declined Thursday, as investors moderated their enthusiasm after a sharp rally triggered by President Donald Trump’s move to suspend military action against Iran. The markets’ focus shifted to upcoming inflation data and ongoing Middle East tensions, both critical for risk sentiment.
At 4:08 p.m. (Bangkok Time) Dow Jones futures slipped 0.41%, following a surge in the Dow Jones Industrial Average of 1,325.46 points Wednesday, which was fueled by hopes for the reopening of the vital Strait of Hormuz oil route. Similar declines were observed in futures tied to the S&P 500 and Nasdaq 100, each down 0.41% and 0.39% respectively.
President Trump’s agreement late Tuesday to pause attacks in Iran marked a significant development in a five-week conflict that had closed the Strait of Hormuz—an essential corridor for global oil shipments. The temporary ceasefire is contingent on reopening the strait, with Trump promising a full lifting of Iran’s blockade. Iranian officials, however, indicated that passage would be allowed only under the supervision of their armed forces.
Despite the ceasefire, Iranian parliamentary speaker Mohammed Bagher Ghalibaf accused the U.S. of already breaching the agreement. He cited Israeli attacks on Lebanon, a U.S. drone’s presence in Iranian airspace, and objections to Iran’s uranium enrichment activities as specific violations.
Crude prices rebounded on Thursday following their steepest one-day decline since April 2020, reflecting renewed concerns over potential supply disruptions. Both Brent and West Texas Intermediate futures climbed roughly 3.7% and hovered at $98.31 and $97.98 per barrel respectively.
President Trump reiterated that U.S. military forces would remain positioned in and around Iran until Tehran complies with the full terms of the agreement. He warned of a heightened military response should any violations occur.
Investors are now awaiting key economic indicators for further direction. First, the February reading of the personal consumption expenditures price index—a key inflation metric for the Federal Reserve—will be released Thursday. Additionally, new data on weekly jobless claims will provide insight into the state of the U.S. labor market.
