US markets see biggest slump since start of US-Israel war on Iran

Market Performance - US markets experienced their largest decline since the onset of the US-Israel conflict, with the Dow dropping 450 points, the S&P 500 decreasing by 1.7%, and the Nasdaq falling 2.3%, entering correction territory [1] Oil Prices - Oil prices have surged, with Brent crude reaching approximately $107 per barrel and US crude at $93 per barrel, while average US gas prices hit $3.98 per gallon [2] - Despite rising oil prices, President Trump indicated that they have not increased as much as anticipated, predicting a return to lower prices once the conflict concludes [2] Market Sentiment - Investor sentiment has been negatively affected by mixed messages from Trump regarding US negotiations with Iran, leading to market dips following his warnings to Iranian negotiators [3] - Trump later stated that "very substantial talks" were occurring with Iran, and noted that Iran allowed 10 oil tankers to pass through the Strait of Hormuz, which he described as a "present" to the US [4] Economic Outlook - A report from the OECD forecasts US inflation to average 4.2% this year, up from an expected 2.6% in 2025, largely due to rising oil prices impacting the global economy [5] - Inflation across G20 countries is projected to be 1.2% higher on average, with significant implications for supply chains and prices, particularly for imported fertilizers [6]