On Wednesday evening, U.S. stock futures slid while oil prices surged as escalating tensions in the Middle East rattled global markets.
Stocks Fall As Oil Prices Surge
Dow futures fell 475 points, or 1.00%, to 46,973. S&P 500 futures declined 57.5 points, or 0.85%, to 6,722, while Nasdaq 100 futures dropped 220.5 points, or 0.88%, to 24,763.
Meanwhile, oil prices surged sharply. WTI Crude April 26 futures rose 7.53% to $93.82 per barrel, while Brent crude jumped 7.50% to $98.88.
Natural gas, RBOB gasoline and ULSD heating oil futures also moved higher, rising 1.09%, 4.70% and 6.19%, respectively.
At the same time, the U.S. Dollar Index edged higher, rising 0.16% to 99.408.
Asian markets also traded lower, with Japan’s Nikkei 225 falling 695.50 points, or 1.26%, to 54,329.87 and South Korea’s KOSPI declining 36.68 points, or 0.65%, to 5,573.27.
Iran Warns Of $200 Oil
Market volatility comes as Iranian officials warned that global oil prices could spike dramatically as fighting continues, Reuters reported.
“Get ready for oil to be $200 a barrel, because the oil price depends on regional security, which you have destabilised,” Iranian military spokesperson Ebrahim Zolfaqari said in remarks directed at Washington.
The warning comes as tensions threaten shipping through the Strait of Hormuz, a critical waterway that carries roughly one-fifth of the world’s oil supply.
Three vessels were reportedly struck in Gulf waters on Wednesday after Iran’s Revolutionary Guards said they had opened fire on ships that ignored their directives.
Meanwhile, the Group of Seven nations — the U.S., Canada, Japan, Italy, Britain, Germany and France — agreed to consider providing escorts for ships to ensure safe passage through the Gulf.
Trump Says ‘We Won’ The War
On the same day, President Donald Trump said U.S. forces had significantly weakened Iran’s military capabilities but signaled operations were not over.
“We won,” Trump said at a rally in Kentucky, while adding that the U.S. did not want to return to conflict repeatedly. “We don’t want to leave early, do we? We got to finish the job.”
Trump also said U.S. forces had destroyed dozens of Iranian naval vessels and suggested Tehran’s military infrastructure had been severely damaged.
Strategic Reserves To Stabilize Markets
The International Energy Agency recommended releasing 400 million barrels from global strategic reserves to stabilize markets, the largest such intervention on record, the report said.
Trump said the move by the IEA would “substantially reduce oil prices as we end this threat to America and the world.”
Energy Secretary Chris Wright added that Trump had authorized the release of 172 million barrels from the U.S. Strategic Petroleum Reserve starting next week.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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