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Trump ends Iran ceasefire, European markets plummet

2026-07-08 18:50:03
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Crude oil prices soar due to tensions in the Middle East

Federal Reserve meeting minutes attract attention

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President Trump announces the end of the Iranian ceasefire during discussions at the NATO Summit in Ankara

Major European stock indexes fell sharply. Germany\'s DAX index plunged 2.4%, France\'s CAC 40 index fell 2.2%

Brent crude oil prices rose more than 5%, as the market took into account potential supply disruptions in the Strait of Hormuz

Energy giants BP and Shell rose, The sector bucked the trend.

Investors await minutes of the Federal Reserve\'s June meeting under new Chairman Kevin Walsh.

European stocks fell sharply on Wednesday after U.S. President Donald Trump announced the end of the Iran ceasefire at the NATO summit in Ankara, Turkey.

The Pan-European Stoxx 600 index fell slightly 0.4% from midday trading to a sharp decline of 1.7% after Trump\'s statement was made public.

Germany\'s benchmark DAX index plunged 2.4%. France\'s CAC 40 index fell 2.2%. The UK\'s FTSE 100 index and Italy\'s FTSE MIB index both recorded declines of more than 1.5%.

President Trump\'s remarks were in response to questions about the Islamabad Memorandum of Understanding. The memorandum is a fragile 60-day ceasefire extension negotiated between Washington and Tehran in June.

\"We reached an agreement and everyone agreed. No nuclear weapons. We reached an agreement. They went out and said to the media, we never talked about it. They have problems. They\'re crazy. In my opinion, this is over,\"Trump said.

The agreement had provided temporary stability to international markets, including ensuring that shipping through the Strait of Hormuz was not disrupted. After the agreement was terminated, the possibility of a new round of maritime blockade against one of the world\'s most important oil transportation corridors increased.

Breaking News U.S. President Trump says the ceasefire agreement with Iran is \"over.\"

Crude oil prices soar due to tensions in the Middle East

Brent crude oil futures, which had previously gained about 2% in early trading, jumped to 5.4% after President Trump\'s remarks. Market participants quickly adjusted their positions in response to possible major supply disruptions.

At the same time, the U.S. government withdrew a key exemption that had previously allowed Iran to continue exporting crude oil, putting further upward pressure on oil prices.

Energy sector stocks strengthened against the market. BP shares rose 3.3%, and Shell rose 1.9%, making it one of the best performing stocks in Europe of the day.

Climbing oil prices has heightened concerns that inflation may remain high for longer than expected, which could delay expected interest rate cuts in European economies.

Federal Reserve meeting minutes attract much attention

Market participants are closely watching the upcoming minutes of the Federal Reserve\'s June meeting, which will be the first meeting under new Chairman Kevin Walsh.

Walsh has said that compared with his previous Fed leadership, he tends to reduce forward-looking guidance, which has brought uncertainty to investors about the direction of future monetary policy.

At the Fed\'s last meeting, about half of policymakers signaled they were willing to raise interest rates further if inflation remained stubborn. If the language in the minutes is hawkish, it could trigger a reassessment of global interest rate expectations.

European sovereign bond yields climbed during the session, indicating reduced demand for risk-sensitive assets.

Geopolitical instability in the Middle East and uncertainty about U.S. monetary policy have prompted investors to move towards a more defensive market layout.

Crude oil prices closed near the day\'s highs, which most clearly reflected the rapid shift in market sentiment triggered by Trump\'s statement.

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