US stock futures slid on Thursday as Pentagon prepares for massive "final blow" of Iran war.

Dow futures fell 0.76%; S&P futures fell 0.85%; Nasdaq futures fell 1%.

Furthermore, Traders increase expectations, now believing there's a over 50% probability of a rate hike by the Fed this year.

Big tech stocks fell with SMCI down 4%; Micron down 3%; TSMC, AMD down around 2%; Oracle, Tesla, Broadcom, Nvidia down over 1%.

The Pentagon is weighing military options for a potential “final blow” against Iran, including ground operations and large-scale bombing, according to US officials. Proposed scenarios include targeting key islands such as Kharg Island, Larak Island, and Abu Musa, or disrupting oil shipments in the Strait of Hormuz.

While Donald Trump has not made a decision and officials describe these plans as hypothetical, preparations for escalation are underway. Iran has rejected initial US demands but remains open to talks, though deep mistrust—particularly from the Islamic Revolutionary Guard Corps—continues to hinder progress.