April 2 (Reuters) - Futures tracking Europe's main stock indexes fell more than 1% on Thursday as hopes of a quick end to the Middle East conflict faded after U.S. President Donald Trump vowed more strikes on Iran.
Futures tracking the pan-European STOXX 600 index . slid nearly 2% by 0636 GMT, with contracts tracking Germany's DAX and France's CAC 40 index down 1.7% and 1.6%, respectively.
Market sentiment weakened after Trump said "we're going to hit them extremely hard over the next two to three
weeks. We're going to bring them back to the Stone Ages where they belong."
Brent crude wizzed past $100 a barrel, up nearly 7%. Oil linked stocks and cyclicals such as industrials and banks will be in focus when market opens.
The STOXX 600 jumped over 2% on Wednesday after Trump stated that Washington would wind up its hostilities with Iran imminently, reflecting the volatility investors have had to navigate for over a month.
A prolonged delay to reopening of the Strait of Hormuz, a strategic waterway for major European imports, will continue to pressure equities and reinforce already heightened inflation and growth fears.
Interest rate futures are pricing in at least two interest rate hikes of 25 basis points each by the end of this year, according to LSEG-compiled data. Markets had been pricing in no change to monetary policy by the European Central Bank before the war.
Among individual movers, Novo Nordisk's shares will be eyed after U.S.- based rival Eli Lilly's weight-loss pill got approval by the U.S.-Food and Drug Administration.
(Reporting by Avinash P and Johann M Cherian in Bengaluru; Editing by Nivedita Bhattacharjee)
