Oil prices rise 5%, and Dow drops 500 points after Trump says ceasefire with Iran is 'over'

Oil prices rose about 5% and U.S. stocks fell Wednesday after President Donald Trump said the ceasefire with Iran is “over,” reviving concerns about escalation. The S&P 500 fell 0.3% after Trump said the pause in fighting is “over,” though he allowed negotiations to continue. The Dow Jones Industrial Average was down 562 points (about 1%) by 1:36 p.m. Eastern time, while the Nasdaq was up 0.1% as gains in major AI stocks supported indexes. Brent crude jumped 5.8% to $78.43 a barrel, still below a wartime peak near $120, following a retreat toward pre-war levels. Markets reacted to worries that renewed conflict could block the Strait of Hormuz and prevent crude deliveries from the Persian Gulf, potentially worsening inflation and prompting the Federal Reserve and other central banks to raise rates. In equities, American Airlines fell 3.3%, United Airlines dropped 2.1%, and housing-related stocks weakened.