Key facts
- US stock markets declined on Wednesday.
- President Donald Trump stated the Iran ceasefire was over.
- Crude oil prices surged, with Brent crude settling up 5.2%.
- Federal Reserve meeting minutes indicated concerns about inflation and potential rate hikes.
- The IMF lowered its 2026 global growth forecast to 3.0%.
US stock markets declined on Wednesday, with the S&P 500 and Dow Jones Industrial Average falling as geopolitical tensions escalated and the Federal Reserve signaled potential interest rate hikes. President Donald Trump declared the interim accord to end the war on Iran "over" following a series of airstrikes, causing crude prices to surge. Brent crude settled up 5.2% and WTI crude rose 4.4%, touching a two-week high. Minutes from the Federal Reserve's June meeting revealed that policymakers saw mounting inflation concerns, with a debate over whether near-term rate hikes would be warranted. While most participants expected inflation to cool, a significant portion also saw scenarios where it would remain high enough to necessitate an eventual rate increase. The International Monetary Fund lowered its 2026 global growth forecast to 3.0%, citing risks from the Middle East and trade tensions, while expecting a rebound in 2027. Global markets saw mixed performance, with Europe's STOXX 600 posting its steepest one-day drop since March, while the Nasdaq managed a modest gain.