Dow futures fall 600 points, US oil surges after Trump vows to hit Iran ‘extremely hard' in coming weeks

• The Strait of Hormuz, a critical route for 20% of global oil supply, remains closed as Trump says other countries should take the lead in reopening it, raising concerns he may leave Iran without a peace deal
• Iran retaliated against Israeli strikes by attacking energy facilities in Qatar and Saudi Arabia, with damage to Qatar's Las Raffan natural gas plant already sparking supply concerns due to lengthy repair timelines
• Market sentiment reversed sharply from Wednesday when the S&P 500 posted its biggest two-day advance since May on hopes for a quick war resolution

Market Summary: U.S. Futures Plunge on Iran Conflict Escalation

Key Market Movements

U.S. stock futures dropped sharply Thursday morning following President Trump's aggressive stance on Iran. Dow Jones futures fell 604 points (-1.3%), while S&P 500 and Nasdaq futures declined 1.4% and 1.8%, respectively, as of 9:00 a.m. ET.

Energy Market Surge

Oil prices surged dramatically on supply concerns:

• Brent crude: up 7.7% to $108.96
• West Texas Intermediate: up 12% to $112.11

Geopolitical Developments

Trump announced plans to strike Iran "extremely hard" within two to three weeks, threatening to bomb the nation "back to the Stone Ages." He characterized the military action as an "investment" for future generations, signaling no immediate de-escalation.

The conflict has intensified following Israeli strikes on Iran's South Pars gas field, prompting Iranian retaliation against energy facilities in Qatar and Saudi Arabia. Qatar's Las Raffan natural gas plant sustained significant damage, raising concerns about extended repair timelines and supply disruptions.

Critical Supply Concern

The Strait of Hormuz, which handles 20% of global oil flow, remains closed with no clear reopening timeline. Trump indicated the U.S. would play only a supportive role, placing responsibility on other nations more dependent on the route. The Wall Street Journal reported Trump is willing to leave Iran without securing a deal to reopen the strait.

Market Implications

The selloff reverses Wednesday's rally, when the S&P 500 posted its largest two-day gain since May on hopes for a swift conflict resolution. Investors now fear prolonged elevated oil prices and extended supply chain disruptions affecting global energy markets.