U.S. and Global Markets Fell Sharply as US-Iran Tensions Escalate

Barry Adams
08 Jul, 2026
New York City

Wall Street indexes plunged amid resurgent of hostilities in the Middle East and soaring oil prices. 

The S&P 500 Index decreased 1%, and the tech-heavy Nasdaq Composite declined 1.2% as sentiment towards the semiconductor and tech stocks remained weak. 

West Texas Intermediate crude oil prices rose 5% to $74.02 a barrel, and the Brent crude oil price advanced 4.6% to $77.56 a barrel as tensions in the Middle East fueled further supply disruptions.

The U.S. president declared that the ceasefire with Iran is "over", blaming the recent Iranian attacks in the Strait of Hormuz. The U.S. also carried out several surgical strikes on targets in Iran and nearby islands. 

Iran conducted the latest wave of attacks in the Strait of Hormuz following persistent bombings by the Israeli forces in southern Lebanon, breaking the terms of the U.S.-Iran agreement. 

The latest Fed's meeting minutes are scheduled to be released later in the day, and divided officials are likely to highlight concerns over persistent inflation. 

However, policymakers are likely to support only one rate hike later in the year, most likely after the mid-term federal elections in early November.     

Across the Atlantic, benchmark indexes in Germany decreased 1.8%, in France fell 1.7%, and in the UK dropped 1.6%. 

The market sentiment over the semiconductor equipment and memory stocks remained weak, and the benchmark indexes in South Korea decreased about 5% for the second consecutive session. 

The Nikkei 225 Stock Average declined 0.7%, the broader TOPIX fell 0.6%, and the yen traded at 162.45 against the US dollar. 

 

U.S. Movers 

Energy producers jumped after the U.S. president declared the end of ceasefire with Iran. 

Exxon Mobil increased 1.5%, Chevron increased 2%, Marathon Petroleum jumped 2.5%, and ConocoPhillips advanced 1.9%. 

Semiconductor and memory stocks led the decliners in New York for the second week in a row amid worries that the AI infrastructure investment is likely to cool down. 

SanDisk decreased dropped 4.5% to $1,550.67, Micron Technology fell 3.5% to $905.39, Intel eased 1.5% to $108.72, and Nvidia Corp. declined 1% to $194.95.