Wall Street Slides and Oil Jumps as US-Iran Ceasefire Collapses

US stocks fell and oil prices surged as a fragile ceasefire between the United States and Iran collapsed, reviving fears of an energy-driven inflation shock. After President Donald Trump declared the truce 'over' and the two sides traded strikes, the Dow Jones Industrial Average dropped 576.76 points, or 1.09%, to 52,348.39, retreating from a record high, while the S&P 500 slipped 0.28% to 7,482.71; the Nasdaq Composite bucked the trend with a slight gain. International Brent crude jumped more than 5% to about $78 a barrel and the US benchmark West Texas Intermediate rose over 4% to roughly $73, as traders priced in the risk of disruption to shipping through the Strait of Hormuz. Semiconductor shares, which had led the market higher, tumbled for a second session amid profit-taking. The renewed conflict complicates the outlook for the Federal Reserve, since higher energy costs feed directly into inflation at a time when policymakers are already leaning toward tighter policy. Investors moved toward safe havens, lifting the US dollar and pressuring currencies such as the Japanese yen.