
U.S. stock futures fell sharply early on Thursday, with the Dow Jones, S&P 500, and Nasdaq futures all declining, after President Donald Trump signaled the Iran war could continue despite earlier hopes of de-escalation.
Markets reacted negatively as Trump warned of further escalation, while oil prices surged above $100, raising concerns about inflation and economic impact.
Despite gains in the previous session, sentiment turned cautious again, with investors worried about prolonged conflict and potential growth risks, while also awaiting key U.S. labor data.
Oil prices surged sharply, with Brent above $106 and WTI near $105. Conflicting signals on ceasefire talks and continued geopolitical tensions have pushed markets into risk-off mode, with oil prices remaining highly volatile and sensitive to developments in the conflict.
Asia-Pacific markets reversed earlier gains and fell sharply on Thursday. Regional indices declined across the board, led by South Korea and Japan.
Gold dropped sharply, snapping a four-day rally after reaching a two-week high near $4,800, as strong demand for the U.S. dollar weighed on the metal.
The decline was driven by escalation fears in the Middle East, with President Donald Trump signaling potential military action, boosting the dollar’s safe-haven appeal.
At the same time, rising oil prices increased inflation concerns, reinforcing expectations of Fed rate hikes, which pushed yields higher and further pressured gold.
In the forex market, EURUSD fell below 1.1550, reversing recent gains as the U.S. dollar strengthened on renewed geopolitical tensions.
Technically, the pair shows a bearish bias, with failure at key resistance and weakening momentum, suggesting further downside risk if support levels break.
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