President Donald Trump declared the tentative ceasefire between the United States and Iran effectively finished on Wednesday, sending oil prices surging and US equity markets sharply lower as traders rapidly repriced geopolitical risk across every major asset class. Speaking at a joint press conference with NATO Secretary General Mark Rutte at the alliance's summit in Ankara, Turkey, Trump was asked whether the ceasefire was over. 'To me, I think it's over,' the president said. 'I don't want to deal with them anymore. As far as I'm concerned, it's over.'
Trump added that he viewed peace negotiations as 'a waste of time,' and later threatened Iran directly during a meeting with Ukrainian President Volodymyr Zelensky. 'We hit them very hard last night,' Trump said. 'We'll probably hit them hard again tonight.' US Central Command confirmed the strikes in a post on X, stating they were 'in response to Iranian attacks on three commercial vessels that were transiting the Strait of Hormuz,' and describing Iran's actions as 'unwarranted, dangerous, and a clear violation of the ceasefire.'
Oil markets reacted immediately and forcefully. Brent crude futures jumped 5.2% to $78.02 per barrel, while West Texas Intermediate rose 4.9% to $73.89, both initially spiking more than 6% before pulling back slightly from session highs as traders digested conflicting signals about the scope of the renewed hostilities. The US Treasury Department separately revoked a waiver that had previously allowed Iran to sell oil on the global market, a move analysts said could re-tighten crude supply materially if it persists.
Equity markets absorbed the news with broad declines. The Dow Jones Industrial Average fell more than 500 points, or approximately 1%, in early trading. The S&P 500 dropped 0.65% and the Nasdaq Composite gave up 0.50%, while the small-cap Russell 2000 declined 0.90%. The CBOE Volatility Index rose 7.32% to 17.31, reflecting renewed investor demand for downside protection. Revenue rotation dynamics that had supported the market through recent tech weakness were not sufficient to offset the scale of the geopolitical shock, according to TheStreet market analyst James DePorre, who noted that 'damage under the surface has been expanding and is gaining momentum.'
The energy sector was the lone major gainer in an otherwise red tape. ExxonMobil rose 1.6%, Chevron advanced 1.9%, and ConocoPhillips climbed 2.2% as crude's price surge translated directly into improved near-term earnings expectations for US oil majors. The US Treasury's revocation of Iran's oil-sale authorization added a further supply-restriction layer that reinforced the bullish move in energy equities even as broader markets sold off.
Iran's foreign ministry said the US strikes were a 'gross violation of the Memorandum of Understanding' and warned that Iran's armed forces 'will not hesitate to defend Iran's territorial integrity, national sovereignty, and national security against American military aggression.' The US-led Joint Maritime Information Center raised its threat assessment for ships transiting the Strait of Hormuz to 'severe,' warning that further hostile action by Iran was likely.
The escalation marks a sharp reversal of the de-escalation trade that had driven broad equity gains through much of June. Analysts said the key variables to watch are whether Iran retaliates against additional US military assets in Bahrain and Kuwait, whether commercial shipping traffic through the strait collapses again, and how quickly the oil-sale revocation moves from a policy threat to an actual restriction on Iranian supply reaching global markets. The situation remains fluid and fast-moving, with new diplomatic and military developments expected throughout the trading day.