US stock futures fell on Wednesday after President Trump declared the ceasefire with Iran “over” and oil surged more than 5%. Dow futures shed nearly 600 points, and traders now await minutes from the Fed’s June meeting.
US stock futures dropped on Wednesday as oil jumped and President Trump said the memorandum of understanding between Washington and Tehran was over, raising the likelihood of a reescalation in the Middle East war.
Futures tied to the Dow fell 1%, or nearly 600 points, while contracts on the S&P 500 dropped 0.8%. Nasdaq 100 futures slipped 1.3% after a down day for US markets.
Iran tensions drive the selloff
Markets are digesting a sharp escalation in US-Iran relations after American forces carried out strikes against Iran late Tuesday, a response to attacks on three commercial vessels in the Strait of Hormuz. Speaking in Ankara ahead of a NATO summit, Trump said the ceasefire agreement was over. According to Yahoo Finance, Trump said of Iran: “As far as I’m concerned, it’s just a waste of time dealing with them”.
Oil surge adds to supply fears
Energy markets swung after the Treasury revoked a license that had let Iran export oil globally, deepening concern over possible supply disruptions. Crude prices climbed more than 5%, with West Texas Intermediate trading above $74 a barrel and Brent at $78 a barrel.
Attention now turns to Wednesday afternoon’s release of minutes from the Fed’s June meeting. Investors will read the document for clues on policymakers’ thinking after the Fed held interest rates steady at its first meeting under Chairman Kevin Warsh.
Source: Yahoo Finance
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