* Indexes off: Dow, S&P 500 1.21% each, Nasdaq 1.68%

* Asset managers drop after Blue Owl caps investor

withdrawal

* Airlines shares tumble on rising crude prices

* Indexes set for biggest weekly jump in four months

(Updates on market open)

By Purvi Agarwal and Twesha Dikshit

April 2 (Reuters) - Wall Street's main indexes tumbled

on Thursday, in the last session of a holiday-truncated week,

after President Donald Trump signaled more aggressive attacks on

Iran, dampening expectations for a swift end to the Middle East

conflict.

During a primetime address on Wednesday, Trump said military

operations would be intensified in the next two to three weeks,

in a sharp reversal from his earlier comments that the U.S. will

be "out of Iran pretty quickly".

"The problem is that we didn't learn anything new. We're

back in a place where we know less, not more, about how we find

an off ramp to this war," said Art Hogan, chief market

strategist at B Riley Wealth.

Oil prices surged about 7%, taking Brent crude futures to

$108 per barrel. Energy stocks in the U.S. climbed, with Exxon

Mobil ( XOM ) and Chevron ( CVX ) up over 2% each. The S&P 500

energy index added 2.4%.

The spike pressured airlines. United Airlines, Delta

Airlines and American Airlines ( AAL ) lost between 4%

and 6%.

Separately, private credit jitters resurfaced after Blue Owl

capped the amount investors can withdraw from two of its

retail-focused funds, sending its shares down 8%.

Other asset managers also fell with Apollo Global,

Blackstone and Ares Management ( ARES ) down between 3.5%

and 4.3%. Financial shares shed 1.1%.

Technology stocks slid 1.8%, with Micron,

Lam Research ( LRCX ) and Sandisk ( SNDK ) down over 3% each.

At 09:50 a.m. ET, the Dow Jones Industrial Average

fell 565.37 points, or 1.21%, to 46,000.37, the S&P 500

lost 79.70 points, or 1.21%, to 6,495.60 and the Nasdaq

Composite lost 367.70 points, or 1.68%, to 21,473.24.

The Russell 2000 index fell 1.3%. Wall Street's fear

gauge, the CBOE VIX index rose to 26.79 points after

falling to an over one-week low on Wednesday.

Earlier this week, market expectations that an end to the

war was near lifted sentiment. Wall Street's three indexes were

on track for their biggest weekly rise in four months, and the

first week of gains in six.

The S&P 500 and the Nasdaq logged their biggest

monthly losses in a year in March, and Brent crude prices marked

their strongest monthly performance on record.

Money market participants are no longer pricing in any

easing from the Federal Reserve, per CME Group's FedWatch Tool,

as energy-driven inflationary concerns have clouded the central

bank's monetary policy outlook. They were anticipating two cuts

before the conflict.

Friday's nonfarm payroll numbers will be in the spotlight

after weekly jobless claims fell last week, but U.S. markets

will remain closed for the Good Friday holiday.

Investor will also focus on developments around Elon Musk's

SpaceX, which confidentially filed for a U.S. initial public

offering on Wednesday, and is expected to target a $1.75

trillion valuation.

Globalstar's ( GSAT ) shares jumped 10% after a report said

Amazon is in talks to buy the low-earth-orbit communication

satellites company.

Declining issues outnumbered advancers by a 3.84-to-1 ratio

on the NYSE and by a 4.47-to-1 ratio on the Nasdaq..

The S&P 500 posted 3 new 52-week highs and 12 new lows,

while the Nasdaq Composite recorded 13 new highs and 91 new

lows.

(Reporting by Johann M Cherian, Purvi Agarwal and Twesha

Dikshit in Bengaluru; Editing by Mrigank Dhaniwala and Shinjini

Ganguli)