Stock market today: Dow, S&P 500, Nasdaq fall as oil surges, Trump declares ceasefire 'over'

US stocks fell on Wednesday as oil surged after President Trump declared that the memorandum of understanding between the US and Iran was “over,” raising the likelihood of a re-escalation in the Middle East war.

The Dow Jones Industrial Average (^DJI) fell 1.2%, or more than 600 points, while the S&P 500 (^GSPC) dropped 0.6%. The tech-weighted Nasdaq Composite (^IXIC) slipped 0.5% following a down day for US markets.

Markets are digesting a sharp escalation in US-Iran tensions after American forces carried out a “series of powerful strikes” against Iran late Tuesday in response to attacks on three commercial vessels in the Strait of Hormuz.

President Trump, speaking in Ankara ahead of a NATO summit, stated that the US-Iran ceasefire agreement was over amid the flare-up in hostilities. “As far as I’m concerned, it’s just a waste of time dealing with them,” Trump said of Iran.

Energy markets have been shaken after the Treasury revoked a license that had allowed Iran to export oil globally, adding to concerns over potential supply disruptions. Crude prices climbed more than 5%, with West Texas Intermediate (CL=F) briefly trading above $74 a barrel and Brent (BZ=F) holding near $78 a barrel.

Attention now shifts to Wednesday afternoon’s release of minutes from the Fed’s June meeting. Investors will parse the document for clues about policymakers’ thinking after the Fed held interest rates steady at its first meeting under Chairman Kevin Warsh. Bets from traders swung even harder toward a rate hike coming this year, potentially as soon as the Fed’s October meeting, per CME data.