US crude oil prices surged past $110 per barrel and Wall Street experienced significant declines following President Donald Trump’s vow to escalate attacks on Iran. Thursday marks the final day of trading for the week due to the Good Friday holiday.

Market Reaction to Trump's Address

Futures for the S&P 500 tumbled 1.5% before the opening bell, while Dow Jones Industrial Average futures lost 1.4%. Nasdaq futures slid 2%. Markets have not recorded a weekly gain since the conflict began in late February.

Iranian Response and Regional Tensions

Just prior to President Trump’s address – in which he stated U.S. “core strategic objectives are nearing completion” – explosions were reported in Dubai as air defenses intercepted an Iranian missile barrage. Lt. Col. Ebrahim Zolfaghari, a spokesman for Iran’s military, asserted on Thursday that Tehran possesses hidden stockpiles of arms and production facilities, stating, “The centers you think you have targeted are insignificant, and our strategic military productions take place in locations of which you have no knowledge and will never reach.”

Oil Price Surge and Strait of Hormuz

Oil prices rose sharply following Trump’s remarks. Benchmark U.S. crude rose $10.11 to $110.24 a barrel, surpassing Brent, the international benchmark, which jumped more than 8% to $109.38. The price increase followed threats of U.S. attacks on Iran’s energy infrastructure if the Strait of Hormuz, a critical waterway for global oil and gas transport, was not reopened.

Analyst Commentary

“The market has shown disappointment because the speech President Trump made was far less than what the market expected,” said Takashi Hiroki, chief strategist at Monex in Tokyo. “There were no concrete details about the end of the hostilities with Iran.”

Global Market Performance

In overnight equities trading, General Motors slid more than 2% after reporting a nearly 10% decline in first quarter sales. This decline impacted other automakers as well. At midday in Europe, Britain’s FTSE 100 was down 0.6%, France’s CAC 40 fell 1.3%, and Germany’s DAX lost 2.4%. Asian shares also closed lower.

  • Tokyo’s Nikkei 225: Down 2.4% to 52,463.27
  • South Korea’s Kospi: Lost 4.5% to 5,234.05
  • Hong Kong’s Hang Seng: Fell 0.7% to 25,116.53
  • Shanghai Composite index: Down 0.7% to 3,919.29