S&P/TSX drops 626 points as Trump declares Iran ceasefire over amid new military strikes
Oil prices surged 6% after the president said the interim agreement is finished; market turmoil follows Iranian attacks on shipping.
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Canada's main stock index fell more than 626 points in late-morning trading Wednesday as U.S. President Donald Trump declared the interim ceasefire with Iran over.
"For me, I think it's over," Trump said on the sidelines of a NATO summit in Ankara, Turkey. "It's just a waste of time dealing with them."
The comments came after U.S. strikes on Iranian targets overnight in response to attacks on three commercial ships in the Strait of Hormuz. Trump said the U.S. was preparing for another night of strikes.
The S&P/TSX composite index was down 626.71 points at 34,645.88. In New York, the Dow Jones industrial average fell 776.20 points to 52,148.95. The S&P 500 dropped 71.63 points to 7,432.22, while the Nasdaq composite fell 227.35 points to 25,591.34.
Oil prices moved higher on the escalation. The August crude oil contract rose US$5.18 to US$75.62 per barrel, a 6.4 per cent gain. The August gold contract fell US$106.70 to US$4,050.70 an ounce.
The Canadian dollar traded at 70.53 cents US, up from 70.43 cents US on Tuesday.
