The Dow dropped 1.5% on Wednesday after President Donald Trump declared the U.S.-Iran ceasefire “over” at the NATO summit in Ankara, Turkey, sending oil prices surging more than 6% as investors braced for renewed Middle East tensions.
Speaking on the sidelines of the NATO meeting, Trump said he believes the ceasefire and memorandum of understanding with Iran has ended following a fresh exchange of strikes between the two countries. “To me, I think it’s over,” Trump said. “I don’t want to deal with them anymore.” He added that while negotiations could continue, he considers them a “waste of time,” according to NBC News.
U.S. crude oil jumped 6.5% to $75 per barrel—its largest one-day move up since early June—while the international Brent benchmark rose 6.2% to almost $79 per barrel, according to NBC News. The surge reflected investor concerns about potential supply disruptions through the Strait of Hormuz, a critical waterway for global oil transit.
The stock market selloff extended a decline that had already begun Tuesday with weakness in chip and technology stocks. S&P 500 futures pointed to a drop of more than 1% at the opening bell, while Nasdaq 100 futures fell 1.5% and Dow Industrial Average futures slid more than 710 points, NBC News reported. Airline stocks were among the hardest hit in pre-market trading, with Delta, Southwest, and United all falling between 3% and 3.5%.
The ceasefire tensions stem from escalating military action between the U.S. and Iran. On Tuesday, Iran struck three commercial vessels near the Strait of Hormuz, and the U.S. Treasury subsequently revoked a sanctions waiver that had allowed Iranian oil sales into global markets. U.S. Central Command then launched retaliatory strikes against Iran, according to NBC News.
How Markets Reacted to the Original Ceasefire
The reversal stands in sharp contrast to investor sentiment when Trump first announced a ceasefire deal on April 8, 2026. When that two-week truce was announced, oil prices plunged and stocks surged in what markets treated as a relief rally. U.S. crude futures fell about 16.5% to $94 a barrel, while S&P 500 futures leapt more than 2%, according to Al Jazeera and Reuters. The Dow posted what was described as its best day in a year, as investors welcomed the possible resumption of oil and gas flows through the Strait of Hormuz.
The stark contrast between April’s rally and Wednesday’s selloff underscores how sensitive financial markets remain to any shifts in the U.S.-Iran standoff. Capital.com analyst Daniela Hathorn noted that the latest developments have “reminded investors that while a ceasefire remains in place, a lasting agreement between the US and Iran is far from guaranteed.” The rapid swings also highlight the fragility of recent gains in gas prices, which had fallen from $4.56 per gallon in May to $3.79 by Wednesday morning, according to AAA data tracked by NBC News.
Sources
- NBC News — Oil surge to $75/barrel, Dow futures decline, Trump’s ceasefire comments, stock futures movements, airline stock losses, and gas price context
- ABC7 Los Angeles — Oil prices surge more than 6% after Trump’s ceasefire statement
- The Motley Fool — Dow drops 1.5% headline
- Al Jazeera — April 2026 ceasefire reaction: oil price decline to $94, S&P 500 futures jump 2%, investor sentiment
- Reuters — April 2026 ceasefire: stocks surge, oil dives below $100
