US stock markets fall amid Iran strikes and potential higher interest rates

Dow down 1.09%, or 500 points, as S&P 500 sees a small loss and tech-heavy Nasdaq rises slightly

• https://www.theguardian.com/world/live/2026/jul/08/us-iran-strikes-trump-nato-summit-live-updates">Middle East crisis live

US stock markets fell on Wednesday as https://www.theguardian.com/us-news/donaldtrump">Donald Trump declared the ceasefire with Iran was over and the Federal Reserve flagged concerns that would warrant higher interest rates.

https://www.theguardian.com/world/2026/jul/08/trump-declares-ceasefire-iran-over-broadside-nato-summit">Trump’s comments on the Iran-US war at the Nato summit in Ankara sent oil prices https://www.theguardian.com/world/2026/jul/08/oil-prices-rise-iran-attack-tankers-strait-of-hormuz">sharply higher.

Brent crude, the global benchmark, jumped more than 5% to crest $80 a barrel.

US stocks fell in step, with the Dow down 1.09%, or 500 points, at closing Wednesday afternoon.

The S&P 500 saw a small loss while the tech-heavy Nasdaq rose slightly.

Global stocks had fallen earlier in the day, with the UK’s FTSE 100 down 1% as Japan’s Nikkei fell 2.1%.