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Updated on: July 8, 2026 / 9:54 AM EDT
/ CBS News
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Stocks tumbled in early trading on Wednesday after President Trump said the ceasefire with Iran is "over" and that it is "a waste of time dealing with them." Oil prices jumped 6% on concerns that a re-escalation of hostilities would jeopardize the flow of oil through the Strait of Hormuz.Mr. Trump's remarks come after attacks by Iran's Islamic Revolutionary Guard Corps on three tankers in the Strait of Hormuz, which were followed by U.S. strikes. Brent crude rose 6.3% to $78.80 a barrel, while West Texas Intermediate, the U.S. benchmark, climbed 6.4% to $75. Before Wednesday's spike, West Texas Intermediate had fallen below $70 a barrel, roughly returning to levels seen before the start of the Iran war in late February. The Dow Jones Industrial Average fell 479 points, or 0.9%, to 52,446. The S&P 500 declined 0.4%, and the tech-heavy Nasdaq Composite slipped 0.2%. "The ceasefire between the U.S. and Iran was always fragile, and some flare-ups were inevitable, unfortunately," Ryan Sweet, chief global economist at investment adviser Oxford Economics, said in a report. "The question is whether this represents a bump in the road or whether we're emerging from the eye of the storm."Higher oil prices could complicate the inflation outlook by raising gasoline and transportation costs, potentially prompting the Federal Reserve to keep interest rates higher for longer.
