Global markets reacted negatively to President Trump's latest Iran remarks, with stocks tumbling and oil prices surging. Trump's Wednesday address disappointed investors who had hoped for a quick reopening of the Strait of Hormuz, threatening to hit Iran "extremely hard" and pummel the country back to the Stone Ages.

Futures contracts tied to the S&P 500, Dow Jones, and Nasdaq 100 indexes all declined more than 1%, erasing some of this week's gains. Asian and European markets followed suit. Brent crude, the international benchmark, climbed nearly 7% to approach $108 per barrel, reflecting supply concerns.

The escalating rhetoric raises geopolitical risk premiums, potentially hampering global economic recovery efforts. Energy sector stocks may benefit from higher oil prices, but broader market sentiment remains fragile as investors weigh the potential for military conflict against diplomatic efforts to de-escalate tensions.