US stock futures fell as oil surged and President Trump declared that the memorandum of understanding between the US and Iran was "over," raising the likelihood of a reescalation in the Middle East war.
Futures tied to the Dow (YM=F) fell 1%, or nearly 600 points, while contracts on the S&P 500 (ES=F) dropped 0.8%. Nasdaq 100 futures (NQ=F) slipped 1.3% following a down day for US markets.
Markets are digesting a sharp escalation in US-Iran tensions after American forces carried out a "series of powerful strikes" against Iran late Tuesday in response to attacks on three commercial vessels in the Strait of Hormuz.
President Trump, speaking in Ankara ahead of a NATO summit, stated that the US-Iran ceasefire agreement was over amid the flare-up in hostilities. "As far as I'm concerned, it's just a waste of time dealing with them," Trump said of Iran.
Energy markets have been shaken after the Treasury revoked a license that had allowed Iran to export oil globally, adding to concerns over potential supply disruptions. Crude prices climbed more than 5%, with West Texas Intermediate (CL=F) trading above $74 a barrel and Brent (BZ=F) at $78 a barrel.