US stock markets declined sharply on Thursday, while oil prices surged, after President Donald Trump vowed to continue military action against Iran and did not provide a clear timeline for de-escalation of the conflict in the Middle East, according to AP.The S&P 500 fell 1.1%, with nearly three out of every four stocks in the benchmark index trading lower. The Dow Jones Industrial Average dropped 545 points, or 1.2%, while the Nasdaq Composite declined 1.6% as of 9:52 a.m. Eastern time.The broad-based weakness in US equities was mirrored across global markets, with major indices in Europe and Asia also trading in the red.The sell-off followed Trump’s national address on Wednesday, where he said the United States would continue to hit Iran “extremely hard over the next two to three weeks,” dampening hopes of a near-term resolution to the conflict.Markets had been gaining earlier in the week on expectations that the war could end soon. Despite Thursday’s losses, major indices remain on track to close the week with gains.Thursday also marked the final trading session of the week for Wall Street, as markets will remain shut on Friday for the Good Friday holiday.Crude oil prices continued to be the primary driver of volatility in global markets. Shipping traffic through the Strait of Hormuz — a key route through which about one-fifth of the world’s traded oil passes during peacetime–has been severely curtailed, tightening global supply.The price of Brent crude, the international benchmark, jumped 7.8% to $109.10 per barrel. US benchmark crude surged 11.7% to $111.92 per barrel. Oil prices had been easing towards $100 per barrel earlier in the week before rising sharply following Trump’s remarks.Financial markets have witnessed sharp swings since the onset of the conflict, with investor sentiment shifting rapidly in response to developments and policy signals.Just earlier this week, the S&P 500 had briefly approached a 10% decline from its record high — a level that is commonly referred to by investors as a “correction.” The index had rebounded on Tuesday and Wednesday on optimism around a possible end to the conflict.Sectorally, airline and travel-related stocks were among the biggest losers on Thursday, reflecting concerns over higher fuel costs and reduced travel demand. United Airlines fell 6.1%, while Carnival dropped 5%.Energy stocks, however, moved higher in line with rising crude prices. Exxon Mobil gained 2.3%, while Chevron advanced 3.4%.In the bond market, Treasury yields remained relatively stable. The yield on the 10-year Treasury note edged up to 4.33% from 4.32% late Wednesday.
