LIVE: Oil surges, Bitcoin struggles to stay above $61K as US prepares to launch new attacks on Iran today

Investors became cautious again and markets declined on Wednesday due to new tensions between the US and Iran.

Speaking at the NATO summit in Ankara, Turkey, US President Donald Trump stated that the ceasefire with Iran is over following fresh clashes in the Middle East region.

Dow Jones, S&P 500, and Nasdaq all declined amid the risk-off sentiment. The DJIA dropped by 488 points or 0.9%, the S&P 500 index fell by 0.6%, while the Nasdaq Composite index decreased by 0.4%.

Oil prices surged dramatically due to the renewed threat of military conflict. The price of Brent increased by 4.6% to $77.56 per barrel, while the price of WTI grew by 4.2% to $73.45.

At a joint press conference with NATO chief Mark Rutte, Trump was asked about the ceasefire and said, “I think it’s over.” He added, “I don’t want to deal with them anymore … as far as I’m concerned, it’s over.” Trump also said Washington had wanted to work toward a peace deal, but he now saw talks with Iran as “a waste of time.”

Later Wednesday, during a meeting with Ukraine President Volodymyr Zelenskyy, Trump said the US would “very probably” strike Iran “hard again tonight.” He added, “I’ll give him a little warning. We’re going to hit them hard tonight, but we’ll see how it all works out.”

Bitcoin also came under pressure as the geopolitical shock pulled investors away from risk assets. The token fell more than 5% and dropped below $61,442, even after mostly brushing off Strategy Inc.’s latest Bitcoin sale earlier in the week. Ether and Solana also moved lower.

Chip stocks looked steadier after weakness in the previous session. The VanEck Semiconductor ETF rose more than 1%, although the fund remains 12% below its recent high.

Investors are now waiting for the Federal Open Market Committee’s June meeting minutes, due at 2 p.m. ET.

The release is expected to give more details on Federal Reserve Chairman Kevin Warsh’s first policy meeting, where officials kept interest rates unchanged but signaled that more hikes could still come if inflation stays hot.