Stock futures moved sharply lower Wednesday after U.S. President Donald Trump told the NATO summit in Turkey that the ceasefire with Iran is “over”, amid renewed hostilities in the Middle East that sent oil prices surging.
Futures for the Dow slumbered 612 points, or 1.2%, to 52,585, following Trump’s comments in Ankara.
Futures for the S&P 500 declined 69.75 points, or 0.9%, to 7,481.50
Futures for the NASDAQ Composite gave back 404 points, or 1.4%, to 28,987.50
The U.S. started a “series of powerful strikes” against Iran on Tuesday evening, retaliating for attacks against three commercial vessels traveling in the Strait of Hormuz, U.S. Central Command said.
Earlier, the Treasury Department revoked a license that permitted Iran to sell its oil around the world in light of the attacks in the Hormuz Strait.
In a statement on Wednesday, Iran’s foreign ministry labeled the strikes a “gross violation of the Memorandum of Understanding” Washington and Iran reached last month to bring their war to an end.
Investors’ attention will also turn to the minutes from the Federal Open Market Committee’s June meeting, due at 2 p.m. ET Wednesday.
The release is expected to provide more insight into Federal Reserve Chairman Kevin Warsh’s first policy meeting, where officials left interest rates unchanged while signaling that additional rate hikes could be warranted if inflation pressures persist.
In Japan, the Nikkei 225 backed off 2.1% Wednesday, while in Hong Kong, the Hang Seng vaulted 3%.
Oil prices popped $3.91 to $74.35 U.S. a barrel.
Gold prices weakened $96.90 to $4,060.50 U.S an ounce.
