Dow Plummets Over 850 Points as Trump Warns of 'Beating' for Iran
US equities plummeted on Wednesday after President Donald Trump's latest warning to Iran, causing crude oil prices to surge ahead of the Federal Reserve's interest rate decision. The Dow Jones Industrial Average (DJIA) fell over 850 points, while the S&P 500 index declined about 0.9% and the Nasdaq Composite dropped 1.1%. Crude oil prices soared with U.S. West Texas Intermediate futures expiring in September rising 6.62% to around $84.51 a barrel.
Trump's warning came after a 'surprise attack' by the IRGC on Tuesday that led to retaliatory strikes on Iran-linked Popular Mobilization Forces (PMF) in Iraq, killing at least 20 people. Trump said he would let the Iranian side continue talking but warned of further action if talks fail.
Crude oil prices have been rising amid escalating tensions between the US and Iran. The United States Oil Fund ETF (USO) was up nearly 8%, while the ProShares Ultra Bloomberg Crude Oil ETF (UCO) gained about 10%. Iranian Deputy Foreign Minister Kazem Gharibabadi said on Tuesday that Iran has not sought negotiations with the US in over two weeks.