Equities fell sharply as President Trump declared the Iran ceasefire over and ordered strikes on 80 Iranian targets, lifting oil prices.
The Dow Jones Industrial Average erased 700 points Wednesday after President Donald Trump announced the end of the US-Iran ceasefire and launched strikes on over 80 Iranian military sites. The attacks followed Tuesday’s assaults on commercial vessels in the Strait of Hormuz, prompting a swift American response targeting air defenses and missile batteries.
Brent crude surged 8% to $80.07, while West Texas Intermediate climbed 7.6% to $75.77 as markets priced in supply risks. NATO’s endorsement of the strikes signaled a shift toward escalation as policy, further unsettling investors. Europe’s Stoxx 600 closed nearly 2% lower, with energy stocks the sole gainers.
Safe-haven assets failed to rally, breaking the typical flight-to-safety pattern. Treasury yields remained stable as traders reassessed geopolitical risks and oil-driven inflation pressures.