Dow Jones futures fell sharply early Wednesday as the U.S. launched fresh strikes on Iran and revoked a temporary waiver on Iranian oil sanctions, escalating tensions that sent crude prices surging and rattled global equity markets.
The U.S. military struck more than 80 Iranian targets on July 7, and the Treasury Department revoked its license allowing global sales of Iranian crude oil after three commercial tankers came under attack in the Strait of Hormuz. President Trump said the ceasefire with Iran was now “over” for him, signaling a return to military confrontation after weeks of relative calm.
Oil prices jumped sharply in response. Brent crude climbed 5.6% to trade above $78 a barrel, while U.S. crude rose to $72.71, up 3.22% from the previous day. The surge marked a sharp reversal after oil had been falling toward pre-war levels as diplomatic hopes had risen in recent weeks.
Futures markets reflected the geopolitical shock. Beyond the Dow decline, broader stock index futures fell as traders weighed the impact of higher energy costs on corporate earnings and inflation. Semiconductor stocks led the broader selloff, with chip makers retreating on concerns that rising oil prices could crimp demand growth. This chip sector weakness compounded the market’s losses, as technology shares have powered much of Wall Street’s gains this year.
The escalation tested a fragile truce that had held since mid-June, when the U.S. and Iran agreed to wind down their conflict. That deal had lifted a temporary ban on Iranian oil sales, allowing crude to fall sharply and easing inflation concerns that had weighed on stocks. The renewal of sanctions and military strikes reversed those gains in a single trading session.
Sources
- Reuters — Oil prices gained more than 3% on Wednesday after Iran and the U.S. military traded airstrikes and Washington reimposed crude sales sanctions.
- CNN — The U.S. hit more than 80 Iran targets and reimposed oil sanctions on Iranian crude.
- BNN Bloomberg — Oil prices jumped 5.6% to more than $78 a barrel after Trump said the ceasefire with Iran is “over.”
- The Guardian — Oil prices rose by more than 3% after fresh strikes from the US and Iran tested a fragile truce, with Brent crude climbing to $76.65 a barrel.
- Trading Economics — Crude oil rose to $72.71 on July 8, 2026, up 3.22% from the previous day.
- Yahoo Finance — US stock futures slipped as traders weighed developments in the US-Iran war against the outlook for Federal Reserve policy.
- Barron’s — Stock futures dropped as U.S.-Iran strikes added to fears amid a chip selloff.
