Dow Falls 500+ Points as Oil Surges on US-Iran Strikes
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- Dow Jones fell 1.1%, or more than 500 points, while the S&P 500 dropped 0.3% and the Nasdaq pared steeper early losses to trade near the flat line.
- Oil prices climbed about 5%, with WTI trading above $73/barrel and Brent near $78/barrel, after the Treasury revoked a license that had allowed Iran to export oil globally.
- President Trump declared the US-Iran memorandum of understanding 'over' while speaking in Ankara ahead of a NATO summit, telling reporters: 'As far as I'm concerned, it's just a waste of time dealing with them.'
- US 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.
- Trump told Bloomberg he did not think the war in Iran would fully restart, even as he suggested the US would 'probably hit them hard again tonight.'
- Federal Reserve June meeting minutes, set for release Wednesday afternoon, drew investor focus after the Fed held rates steady at its first meeting under Chairman Kevin Warsh; CME data showed traders betting on a rate hike as soon as October.
Why it matters: Energy traders and equity holders absorbed a sharp geopolitical shock in one session — the Dow lost over 500 points and crude jumped 5% — as the US effectively closed a diplomatic channel with Iran and revoked its oil export license simultaneously. That sell-off landed ahead of Fed minutes expected to clarify rate-path thinking under new Chair Kevin Warsh, where CME traders are already pricing in a hike as soon as October.
