Markets plunge, oil spikes as Trump ends Iran ceasefire

Global financial markets tumbled and oil prices surged on Wednesday after U.S. President Donald Trump declared the interim ceasefire with Iran over, reigniting fears of a broader Middle East conflict. The announcement followed a series of overnight U.S. military strikes on dozens of targets along the Iranian coastline, which were described as retaliation for apparent Iranian attacks on vessels in the strategically vital Strait of Hormuz.

The immediate market reaction was severe. U.S. benchmark West Texas Intermediate and international Brent crude oil prices jumped between 4.4% and 7%, with Brent briefly touching $79 a barrel. The Dow Jones Industrial Average fell by more than 800 points, or approximately 1.5%, erasing over $500 billion in market value from U.S. equities. The S&P 500 also declined, while European indices saw steeper losses, with Germany's DAX dropping over 2%. The renewed hostilities abruptly reversed a period of relative market calm that had followed a ceasefire agreement announced just weeks prior.

President Trump's remarks, made to reporters and during the NATO summit, were unequivocal. He stated he no longer considers the ceasefire in effect, calling further...