US stock markets closed lower on Wednesday as investors digested President Donald Trump’s announcement that the provisional agreement aimed at ending the war with Iran had collapsed.

The Dow Jones Industrial Average declined 1.09% to 52,348.39 points, while the S&P 500 also ended the session in negative territory.

The remarks triggered a broad risk-off selloff across US equity markets.

The sharp losses reflect growing investor anxiety over the potential for renewed geopolitical escalation in the Middle East and its downstream impact on global supply chains and energy prices.

This development marks a significant reversal in the diplomatic trajectory that had previously offered a path to de-escalation.

The collapse of the deal removes a key stabilizing factor that markets had begun to price in, shifting the focus back to the risks of prolonged conflict.