U.S. stock futures posted steep losses on Wednesday as investors reacted to heightened U.S.-Iran hostilities and awaited the release of minutes from the Federal Reserve’s latest policy meeting. Market participants are closely monitoring geopolitical risks following a fresh escalation in the Middle East, which has added volatility to financial markets.
At 4:33 p.m. (Bangkok Time), Dow Jones Industrial Average futures were 665 points lower, a decline of 1.25%, extending overnight losses after President Donald Trump issued remarks from Ankara. S&P 500 futures fell by 1%, while Nasdaq 100 futures were down 1.49%.
The market moves follow Tuesday’s session, where the Dow gave up 130 points after momentarily reaching a record intraday peak, with the S&P 500 down 0.45% and the Nasdaq Composite sliding 1.16% as semiconductor shares led the downward trend.
The downturn comes after the U.S. launched what its Central Command described as a “series of powerful strikes” against Iranian positions on Tuesday evening in response to attacks targeting three commercial ships in the Strait of Hormuz. In addition, the US Treasury Department revoked a previously held license permitting Iranian oil exports, citing the recent incidents in the region.
On Wednesday, President Trump announced the termination of the memorandum of understanding with Iran, signaling an end to recent ceasefire efforts. Trump stated he does not intend to further engage with Tehran, though U.S. officials may continue negotiations with limited expectations for progress.
The surge in geopolitical risk has fueled gains in energy markets. Oil prices reacted sharply on Wednesday, with West Texas Intermediate rose 6.69% to $75.15 per barrel and Brent crude advanced 6.66% to $79.10.
Investors are also awaiting minutes from the Federal Open Market Committee’s June meeting, which are set for release at 2 p.m. (Eastern Time) on Wednesday. The minutes could offer additional detail on the Fed’s latest policy stance, following Chair Kevin Warsh’s inaugural meeting where rates were kept steady but comments pointed to potential future hikes if inflationary pressures continue.
