US equity markets posted sharp losses on Wednesday as President Donald Trump’s escalating rhetoric toward Iran triggered a broad risk-off selloff.
The Dow Jones Industrial Average fell 1.02%, while the S&P 500 declined 0.56% and the tech-heavy Nasdaq Composite dropped 0.34% in early trading.
The sell-off followed Trump’s remarks at the NATO summit in Ankara, where he stated the US could "take over" Iran, intensifying fears of a wider military confrontation in the Middle East.
The market reaction underscores the persistent sensitivity of global equities to geopolitical shocks.
Investors are increasingly pricing in the risk of supply chain disruptions and energy market volatility should tensions escalate further.
The move comes amid a broader backdrop of uncertainty, with markets already reeling from earlier concerns over US-Iranian military exchanges and the potential closure of the Strait of Hormuz.