futures were trading slightly in the red during Friday’s session, March 27, even as US President Donald Trump extended the deadline for a potential attack on Iran’s energy infrastructure by another 10 days.
The move failed to calm markets and instead led to a sharp rebound in crude oil prices.
Futures of the three key indices — the Dow Jones Industrial Average, S&P 500, and Nasdaq—were down in the range of 0.3%.
Although Trump’s recent statements indicated that he is willing to end the war, the US is reportedly sending more troops to the region, creating uncertainty among investors over a potential ceasefire in the Middle East.
Trump said on Thursday that he would delay a threatened strike on Iran’s energy infrastructure and extend his deadline for Tehran to reopen the Strait of Hormuz until April 6, adding that talks to end the war are “going very well.”
The move marks a pullback from Trump’s earlier warning that the US would target Iran’s energy plants if the crucial shipping lane remained closed. Iran has threatened to retaliate against regional infrastructure, including desalination facilities, if the US follows through.
A day after Tehran dismissed Trump’s , the president said Iran was “begging to make a deal” and urged its leaders to , which triggered a massive sell-off in US equities in the previous session.
The S&P 500 dropped 1.7% during Thursday’s trade, marking its worst day since January, and is back on track for a fifth straight losing week.
The Dow Jones Industrial Average fell 469 points, or 1%, while the Nasdaq Composite sank 2.4%, slipping more than 10% below its all-time high set earlier this year.
Stocks across the world were volatile in a week that began with high hopes after President Donald Trump said productive talks had taken place to end the war. However, were underway and instead put forward its own five-point proposal to end the conflict.
The ongoing conflict has increasingly centred around the Strait of Hormuz — the narrow gateway for global energy shipments. Iran has effectively shut the critical passage through which nearly one-fifth of the world’s oil supply flows.
Meanwhile, missile strikes in West Asia have continued, with Israel reportedly warning on Friday that it will as Tehran continues firing missiles at Israel and Gulf Arab nations.
The Islamic Revolutionary Guard Corps (IRGC) executed the 83rd wave of Operation ‘True Promise IV’ in the early hours of Friday, striking key American and Israeli military installations across the region with missiles and drones, according to the Fars news agency.
Brent crude climbs above $110
Brent crude continued to build on the previous day’s gains, with prices rising another 3.5% to reach an , as traders fear that supply disruptions will persist.
Before the start of the war, Brent crude was around $70, indicating that prices have surged nearly 57% in a month, sending shockwaves through the global economy and hitting Asia especially hard, as it depends heavily on the Middle East for oil imports.
Economists are warning that if crude oil prices remain at these elevated levels, it could hurt global growth and cripple many economies that are highly sensitive to crude price volatility.
(With inputs from AP)
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