• Wall Street suffers declines as oil prices exceed $110 per barrel.
• Trump's threats of continued military action against Iran impact market sentiment.
• The S&P 500 and Dow see significant drops amid global market weakness.

U.S. stock markets experienced significant declines on Thursday, as President Donald Trump announced a continuation of military action against Iran. The S&P 500 fell 1.1%, with nearly three-quarters of its stocks declining, while the Dow Jones dropped 545 points, equating to a 1.2% decrease. The Nasdaq composite also saw a 1.6% drop as fears escalated regarding the Middle Eastern conflict, impacting global market sentiments. This trend was apparent not just in the U.S., but also reflected in major indices across Europe and Asia, according to SCMP, Indiatimes, and Africa News.

Oil prices played a crucial role in the market's volatility, with Brent crude shooting up by 7.8% to $109.10 per barrel, while U.S. benchmark crude surged 11.7% to $111.92 per barrel. These spikes occurred following Trump's announcement where he stated the U.S. would "hit Iran extremely hard over the next two to three weeks," dampening any earlier optimism about a resolution to the conflict. Just earlier in the week, markets had shown signs of recovery as investors hoped for de-escalation, according to SCMP, Indiatimes, and Africa News.

Airline and travel-related stocks were among the hardest hit, reflecting the growing concerns over escalating fuel costs and diminished travel demand. For instance, United Airlines saw a decline of 6.1%, while Carnival Corporation plummeted by 5%. In contrast, energy companies benefited from rising oil prices, with ExxonMobil increasing by 2.3% and Chevron by 3.4%. The bond market remained stable, with the yield on the ten-year Treasury rising slightly to 4.33% from 4.32%, according to SCMP, Indiatimes, and Africa News.