Stocks fell, the dollar strengthened, and oil prices climbed on Thursday after President Donald Trump warned he would 'strike Iran extremely hard' over the next two to three weeks.
US stock futures declined by 0.67%, European futures dropped by 0.1%, and MSCI's Asia-Pacific index slid 0.75%.
The market focuses on when the Strait of Hormuz, carrying a fifth of global oil, will reopen, easing supply bottlenecks.
Higher energy prices in March fueled inflation concerns and dampened investor sentiment.
The euro fell 0.25% to $1.156, while Brent crude for June rose over 3% to $104.75 per barrel.