US stock-index futures plunged more than 1% Thursday after President Donald Trump delivered a hardline speech that dashed hopes for an early reopening of the Strait of Hormuz. Investors reacted negatively to the apparent prolongation of Middle East tensions, sending futures sharply lower as the trading session approached amid heightened geopolitical concerns.

The critical waterway sees approximately one-fifth of global oil consumption pass through its narrow channel, making it a vital economic artery. Markets had been pricing in a swift resolution to the regional conflict, which would have stabilized energy supplies and shipping routes. Trump's combative rhetoric suggests prolonged instability in this strategically vital region.

Energy companies with Middle East operations face heightened uncertainty, while defense contractors may see different market impacts. The market reaction reflects growing risk aversion as investors reassess the economic implications of extended geopolitical tensions. Oil prices rose in response to the reduced likelihood of immediate conflict de-escalation, affecting global supply chains.