The Dow Jones industrial average fell sharply on Wednesday after US President Donald Trump said at a NATO summit in Turkey that a truce with Iran was “over” amid renewed hostilities in the Middle East that sent oil prices soaring.
The index of 30 shares fell by 577 points, or 1.1%. The S&P 500 was down 0.3%, while the Nasdaq Composite was up 0.2%.
International Brent crude futures rose 5.43% to $78.19 a barrel. West Texas Intermediate futures rose 4.37% to close at $73.52.
“I think it’s over. I don’t want to deal with them anymore. They’re scum,” Trump said.
The president later on Wednesday threatened to strike Iran again, saying “we’re going to hit them hard tonight.”
Trump’s remarks followed what the US called “a series of powerful strikes” against Iran on Tuesday in retaliation for attacks on three commercial ships sailing through the Strait of Hormuz, SEEbiz reports.
Speaking to reporters at a NATO summit in Ankara, Turkey on Wednesday, the military alliance’s secretary-general, Mark Rutte, said the US strikes were “absolutely necessary”.
“When you have a ceasefire and Iran basically violates the ceasefire — we see what happened yesterday with the attacks on the ships — I think it’s absolutely critical that the U.S. responds strongly,” he said.
Energy stocks also rose. Shares of ConocoPhillips and Chevron each gained 1%, while Marathon Petroleum rose 3%.
Consumer stocks, which could be affected by higher energy prices, fell. Home Depot fell 2%, while McDonald’s declined more than 1%. Booking Holdings lost 4%.
Chips shares – which were under pressure in the previous session – stabilized. The VanEck Semiconductor ETF ( SMH ) rose more than 1%, although the fund is still 12% off its recent high.
