Dow tumbles 500 points as oil jumps with Trump saying attacks on Iran to continue: Live updates

The Dow Jones Industrial Average dropped 500 points Wednesday after President Donald Trump declared at the NATO summit in Turkey that the ceasefire with Iran is "over," reigniting geopolitical tensions in the Middle East. Oil prices jumped on the announcement as markets priced in renewed supply risk from the region.

Trump's statement marks an abrupt end to a brief détente between Washington and Tehran, immediately pressuring equity markets. The Dow's decline reflects investor flight from risk assets as the prospect of military escalation returned to the table. Energy markets moved inversely, with crude oil rallying on concerns that conflict could disrupt key shipping lanes or production infrastructure in the Persian Gulf.

The sharp equity sell-off and oil spike signal that traders are repositioning for a more volatile geopolitical landscape. Defense and energy sectors typically outperform during Middle East flare-ups, while cyclical and growth stocks face headwinds from higher input costs and risk-off sentiment.