futures crashed on Thursday, 1 April, following a speech by US President Donald Trump that dampened hopes of an imminent end to the military conflict with Iran.
Trump’s comments soured the more upbeat sentiment that followed remarks earlier this week that he would consider ending the war with Iran before reopening the Strait of Hormuz, a critical trade waterway, which has now become an epicentre of tensions, with the US attempting to seize control of it.
Futures of the three key indices—the Dow Jones Industrial Average, the S&P 500, and the Nasdaq—were trading higher in the range of 1.5%–2%.
In the previous session, all three benchmark indices had registered strong gains on expectations that Washington might scale back its military campaign.
In his latest address on the Iran war, “very hard” over the next two to three weeks and bring the country “back to the Stone Ages.” He also touted the success of US operations, arguing that Washington’s objectives have so far been met or exceeded.
He further threatened to target Tehran’s energy infrastructure if the Strait of Hormuz is not reopened. Earlier, Trump had set a 6 April deadline for Iran to reopen the strait, warning of expanded attacks on the country’s power plants if it fails to comply.
The ongoing conflict has roiled US stock markets, which had earlier shown resilience but slipped into correction territory last week.
In his nearly 20-minute speech, Trump did not outline any shift in Iran policy, nor did he provide specifics on how operations would proceed beyond what he had previously stated.
Earlier, Trump had said that with Iran were underway, while Tehran has publicly denied any talks and tightened its grip on the . Reports also indicate that the country is planning to levy fees on ships passing through the key waterway.
The war, which has cost the Trump administration billions of dollars and pushed gas prices above an average of $4 a gallon, has also led to millions of people marching across all 50 states in “No Kings” protests in late March 2026.
Meanwhile, the war has weakened US relations with NATO, and Trump is reportedly considering pulling the US out of the 77-year-old defensive alliance.
The conflict in the Middle East is no longer a regional war, as its impact is being felt globally, with disruptions in crude oil supply forcing many economies to shift to alternatives such as coal, raising concerns over emissions.
Brent back above $110
Crude oil prices have resumed their winning run amid renewed threats from Trump, which have fuelled concerns that supply disruptions will persist.
International benchmark to the day’s high of $109.70 a barrel, while US benchmark West Texas Intermediate rose 6.3% to $106.45.
Brent crude surged 43% in March, marking its biggest monthly jump on record and extending its winning streak to three consecutive months, resulting in a cumulative gain of 70%.
(With inputs from Bloomberg)
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