US Stock Market Opens Lower Amid Iran Tensions, Oil Prices Rise

The three leading US stock market indices — Dow, S&P 500 and Nasdaq Composite have opened lower after Trump threatened more Iran strikes. The US stock market opened sharply lower on Wednesday, with Nasdaq Composite down by 0.4% and Dow fell nearly 500 points in the opening minutes of the trade. S&P 500 is down by nearly 1%. The main reason behind this negative mood is President Donald Trump’s statement that the memorandum of understanding to end the war with Iran is “over.” This comment has led to negative market sentiment and a rise in oil prices. Speaking in Ankara before a NATO summit, the U.S. president said he was not interested in further engagement with Iran. This has raised investor concerns about escalating tensions in the Middle East and has put the fragile ceasefire with Tehran at risk. Oil prices rose on Wednesday after Trump’s comments. Both Brent crude futures and U.S. West Texas Intermediate crude futures rose by over 5%. Adding to the pressure, Iran and Oman have proposed a plan to the U.S. for jointly administering the Strait of Hormuz. This plan includes a shared collection of administrative fees by both nations, according to four sources cited by NBC News. “The prospect of a permanent toll on ships transiting the Strait of Hormuz has become a credible risk for global markets, and could prove far more consequential for investors than the latest military escalation,” said Nigel Green, CEO, deVere Group. The market is also waiting for the release of the US Fed FOMC meeting minutes later in the day. These minutes will give insights into policymakers’ views on inflation risks and economic growth. Along with this, negative sentiment was also driven by a renewed selloff in semiconductor stocks. Chipmakers are facing increasing pressure as investors doubt whether AI hyperscalers can keep up their high levels of infrastructure spending. South Korea’s KOSPI stock index fell over 5% on Wednesday, closing at 7,246.79 — a fall of more than 20% from its record close in late June, which confirms a bear market. This fall came after significant volatility in chipmaker stocks and rising concerns over risky investments. Samsung saw a 19-fold increase in quarterly profit, but this did not help improve overall market sentiment. On top of this, news that China’s DeepSeek has made its own AI chip has added to concerns in the sector. SK Hynix , which is listed on the Korean stock exchange, dropped 5.68% on Wednesday. The company is set to list its ADS on Nasdaq on Friday. : This article is for informational purposes only and does not constitute financial, investment, or legal advice. Data and estimates cited are sourced from publicly available reports. Readers should consult a financial advisor before making any investment decisions.