On Wednesday, US equities retreated after oil prices jumped following President Trump’s declaration that the US‑Iran memorandum of understanding is finished, heightening fears of renewed conflict in the Middle East.
The Dow Jones Industrial Average (^DJI) slipped 1.6%, shedding more than 800 points, while the S&P 500 (^GSPC) eased 1%. The technology‑focused Nasdaq Composite (^IXIC) also fell 0.9%, extending the market’s downward trend.
Investors are assessing a sharp rise in US‑Iran tensions after U.S. forces launched a series of strikes on Iran late Tuesday, retaliating against attacks on three commercial ships in the Strait of Hormuz.
Speaking in Ankara before a NATO summit, President Trump said the US‑Iran ceasefire agreement is over amid rising hostilities, adding, “As far as I’m concerned, it’s just a waste of time dealing with them,” when referring to Iran.
Energy markets were jolted after the Treasury revoked a license that had permitted Iran to export oil worldwide, stoking worries about supply disruptions. Crude oil prices rose more than 7%, with West Texas Intermediate (CL=F) trading above $75 per barrel and Brent (BZ=F) hovering near $79 per barrel.
Focus now turns to the Wednesday afternoon release of the Federal Reserve’s June meeting minutes, which investors will scrutinize for hints about policymakers’ stance after the Fed kept rates unchanged at its first meeting under Chairman Kevin Warsh. Trader sentiment has shifted further toward a possible rate increase later this year, perhaps as early as the October meeting, according to CME data.
