Global markets fell and oil prices surged after US President Donald Trump threatened to escalate military action against Iran, declaring the memorandum of understanding to end the conflict “void” and warning of further strikes. Speaking at a NATO summit, Trump told reporters, “We’re going to hit them hard tonight,” adding that it “may be a big attack.”

On Wall Street, all major indices opened lower: the Dow fell 0.8%, the Nasdaq 0.2%, and the S&P 500 0.5%. International benchmark Brent crude jumped 4.2% to $77.24 a barrel, the highest in two weeks.

Oil prices had been declining from a $126 high in late April amid a June deal to end the war. Trump’s remarks reversed that trend. US Treasury Secretary Scott Bessent echoed the president, suggesting US oil should trade at a premium.

Travel stocks took a hit: United Airlines dropped 3%, Southwest 2%, and Delta 2.4%. Energy stocks rose: ConocoPhillips gained 1.8%, Chevron 1.5%, and ExxonMobil 1.4%.

Gold prices also fell: spot gold dropped 0.8% to $4,072.69 per ounce, its lowest since July 2. Analysts warn that renewed US-Iran tensions pose a major risk to the global economy, potentially triggering a second oil shock and reversing recent disinflation trends.

Source: www.aljazeera.com