US stock futures fall as Trump declares the Iran deal 'over'. Oil climbs
U.S. Stock Index?futures fell sharply on Wednesday.?Nasdaq Futures reached a four-week high after President Donald Trump declared that a memorandum aimed at ending a war with Iran is "over". This sent oil prices soaring.
The U.S. President, speaking in Ankara, ahead of the NATO summit, said he was not interested in further engagement with Iran. This has heightened investor concern over the'renewed escalation' in the Middle East, and is the latest blow against the fragile ceasefire between Washington and Tehran.
Iran's Revolutionary Guards claimed they targeted U.S. Military sites in Bahrain and Kuwait after the U.S. launched an attack on Iran. Washington claimed that the strikes were in response to attacks on oil tankers in Strait of Hormuz - a vital waterway for international oil shipments.
Brent crude futures, as well as U.S. West Texas Intermediate futures, both rose more than 5% on Wednesday after Trump's remarks.
Energy stocks rose in premarket trading due to the increase in crude oil prices. Chevron gained 2.4%, Exxon Mobil increased by 3%, and ConocoPhillips gained 2.2%.
Devon Energy climbed by 2.5%. Occidental Petroleum, APA Corp, and Diamondback Energy rose by 2.6%, 2.6% and 2.4% respectively.
Investors will also be looking at the minutes from the U.S. Federal Reserve’s June policy meeting due later in the session for clues about how policymakers assess?inflation risk and economic growth.
CME's FedWatch tool shows that markets are pricing at least one rate increase by the end of 2026.
At 04:56 am. The Dow?Eminis dropped 620 points or 1.17%. S&P 500?Eminis lost 63.75 or 0.84%. Nasdaq 100 Eminis fell by 330 or 1.12%. (Reporting by Ragini Mathur in Bengaluru; Editing by Pooja Desai)
(source: Reuters)
