The S&P 500 fell 0.6% on Wednesday after President Donald Trump declared the ceasefire agreement with Iran “over,” triggering a sharp surge in oil prices that rattled equity markets and threatened recent gains in consumer fuel costs. The reversal marks a dramatic shift from the relief rally that gripped Wall Street when Trump first announced a ceasefire in April.
Oil prices jumped more than 6% on the news, with U.S. crude surging 6.5% to $75 per barrel and Brent crude rising 6.2% to nearly $79 per barrel, according to NBC News. The moves marked crude’s largest one-day jump since early June. S&P 500 futures pointed to an opening decline of more than 1%, while Nasdaq 100 futures dropped 1.5% and Dow futures slid more than 710 points, compounding losses that began with a tech-stock selloff on Tuesday.
Trump made the declaration while at the NATO summit in Ankara, Turkey, saying “to me, I think it’s over” and that he considers further negotiations “a waste of time.” The statement came after the U.S. said Iran struck three commercial vessels near the Strait of Hormuz on Tuesday. Later that day, the U.S. Treasury revoked a sanctions waiver that had allowed Iranian oil to be sold into global markets, and U.S. Central Command launched “a series of powerful strikes against Iran” in retaliation, according to NBC News.
The Strait of Hormuz, a vital chokepoint through which roughly 20% of global oil flows, has been a focal point of Middle East tensions. Concerns about disruptions to shipping through the waterway directly drive oil volatility and stock market sensitivity to Iran-related developments.
The market reaction stands in sharp contrast to April, when Trump announced the initial two-week ceasefire with Iran. That announcement sent oil prices plunging below $100 per barrel and sparked a relief rally in stocks. The S&P 500 jumped 2.1% to 2.9% on the ceasefire news, and oil futures fell sharply as investors priced in reduced geopolitical risk. When Trump later extended the ceasefire in June, stocks again rallied on hopes for de-escalation and the reopening of shipping lanes.
Capital.com market analyst Daniela Hathorn said the latest developments have “interrupted what had become an increasingly complacent market narrative.” She noted that “while a ceasefire remains in place, a lasting agreement between the US and Iran is far from guaranteed.” The reversal has also halted a recent decline in U.S. gasoline prices. The national average had fallen from a high of $4.56 per gallon in May to $3.79 as of Wednesday morning, but the drop stalled over the past two days as oil markets reacted to renewed tensions.
Airline stocks were hit particularly hard in pre-market trading, with Delta and Southwest both falling 3% and United dropping 3.5%, reflecting concerns about higher fuel costs. Other travel stocks including Carnival and Royal Caribbean fell nearly 4%. Global stock indexes also sold off sharply, with flagship indexes in Spain, Germany, and France plunging 2%, while benchmarks in Italy and the U.K. fell about 1.5%.
Sources
- NBC News — Detailed reporting on oil price surges, S&P 500 futures declines, Treasury sanctions waiver revocation, U.S. strikes against Iran, and Trump’s ceasefire declaration; analyst commentary from Capital.com
- Reuters, Al Jazeera, CNN, NPR, CNBC — Prior ceasefire announcements in April 2026 and their market impacts; historical context on stock and oil reactions to Iran negotiations
