US stock prices were falling in Wednesday's premarket session as oil prices jumped after President Trump reportedly said the US ceasefire agreement with Iran was "over."
S&P 500 futures declined 0.7%, Dow Jones Industrial Average futures fell 0.9% and Nasdaq futures were off 1% before the opening bell. The indexes finished the previous trading session lower.
During a North Atlantic Treaty Organization summit in Turkey on Wednesday, Trump said the memorandum of understanding signed with Iran last month to end the war in the Middle East was "over," according to several media outlets.
"To me, I think it's over," Trump said, according to CNBC. "I don't want to deal with them anymore."
Trump's comments came after the US Central Command said Tuesday its forces completed a "new round of offensive strikes" against Tehran, following its attacks on commercial vessels transiting through the Strait of Hormuz. Iran's Islamic Revolutionary Guard Corps launched strikes on US military targets across Bahrain and Kuwait in response to Washington's attacks, CNN reported, citing the IRGC.
The US Treasury Department also revoked a general license that authorized the sale of Iranian oil, petrochemicals and petroleum products, according to a Tuesday statement from the Office of Foreign Assets Control.
West Texas Intermediate crude oil jumped 5% to $73.99 a barrel before the open, while Brent spiked 5.2% to $78.02.
The Federal Reserve is scheduled to post minutes of its last policy meeting in June at 2 pm ET, which will be assessed for fresh insight on the central bank's monetary policy. At the meeting, policymakers kept their benchmark lending rate steady for a fourth consecutive time.
US Treasury yields were moving higher in premarket action, with the two-year rate increasing 4.8 basis points to 4.21% and the 10-year rate adding 4.2 basis points to 4.57%.
Wednesday's economic calendar also includes the weekly mortgage applications bulletin at 7 am, followed by the weekly EIA domestic petroleum inventories report at 10:30 am.
Shares of SpaceX (SPCX) rebounded 1.2% pre-bell after falling 6.8% at the close of Tuesday's session. Alibaba Group's (BABA) US-listed stock climbed 9.1%.
MasTec (MTZ) edged up 0.5% as the infrastructure engineering and construction company agreed to acquire electrical contractor Superior Group in a cash and stock deal worth roughly $1.65 billion.
Levi Strauss (LEVI) is scheduled to release its latest financial results before the bell, while PriceSmart (PSMT) and AZZ (AZZ) post their earnings after the markets close.
Gold dropped 2.3% to $4,062 per troy ounce, while bitcoin slipped 2.6% to $62,068.
