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Trump ends Iran ceasefire: Oil prices soar, markets plummet

2026-07-08 18:50:20
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Highlights

U.S. President Trump announced the termination of the U.S. -Iran ceasefire agreement at a NATO meeting in Ankara.
Dow Jones futures plunged more than 600 points; Nasdaq 100 futures fell 1.4%.
Crude oil prices surged more than 5%, affected by concerns about potential supply disruptions.
South Korea\'s KOSPI index fell 5.4%, with the semiconductor sector leading the decline.
Investors are waiting for the release of minutes of Wednesday\'s Federal Reserve meeting.

Market turmoil: Trump announced the termination of the US-Iran ceasefire agreement

On Wednesday, financial markets experienced severe turmoil. Earlier, U.S. President Donald Trump announced that the ceasefire agreement with Iran had ended, triggering widespread selling pressure and pushing energy prices sharply higher.

Trump formally announced the decision during the NATO summit in Ankara, Turkey. \"As far as I\'m concerned, it\'s all over,\" the president told media, claiming Iran had previously publicly rejected the negotiated terms.

The president\'s remarks came after the Iranian military retaliated against U.S. military facilities in Kuwait and Bahrain. The actions are in response to previous U.S. strikes on Iranian facilities and Washington\'s decision to lift a sanctions exemption that had previously allowed Tehran to export oil on international markets.

Energy markets respond to escalating tensions

Brent crude futures rose 5.1% to $77.93 a barrel. West Texas Intermediate crude oil prices climbed 5.2% to close at $74.12 a barrel.

The sharp rise in oil prices has revived concerns about energy-related inflationary pressures. This development is significant because rising energy costs could further complicate the Fed\'s ability to cut interest rates in coming months.

Dow Jones index futures plunged about 680 points at one point, with the largest drop reaching 1.3%. S & P 500 futures fell 0.9%. Nasdaq 100 futures fell 1.4%.

All three benchmark indices closed down on Tuesday. The S & P 500 fell 0.5%, the Nasdaq fell 1.2%, and the Dow closed down 0.3%.

Semiconductor sector faces headwinds

Before Trump\'s announcement, technology stocks were already under downward pressure. Samsung Electronics released quarterly earnings results that exceeded analysts \'expectations, but the data failed to alleviate investors\' concerns about demand for artificial intelligence chips and memory chip pricing trends.

This development has put additional pressure on the entire semiconductor industry. South Korea\'s KOSPI index plunged 5.4%, mainly dragged down by declines in shares of Samsung Electronics and SK Hynix.

Asian stock markets generally fell, partly due to the region\'s high dependence on oil imports. The impact of rising energy costs on Asian economies is generally more severe than in other regions.

Deutsche Bank analyst Jim Reid pointed out that the current situation has \"rekindled market concerns about energy supply and geopolitical risks.\" He described market risk sentiment as \"weak, but maybe not as bad as you think.\"

Market participants are currently paying close attention to two major events: a potential escalation of tensions in the Middle East and the Federal Reserve\'s upcoming June policy meeting minutes.

This note may shed light on policymakers \'current views on inflation dynamics and interest rate policy, especially under the leadership of new Federal Reserve Chairman Kevin Walsh.

Traders will also focus on the second quarter corporate earnings season, which is scheduled to start in the next few days.

As of Wednesday\'s morning trading session, futures contracts showed that all three major U.S. stock indexes opened lower.

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