Wall Street retreated from record highs on June 3 as rising US-Iran tensions drove crude oil prices higher, reminding investors geopolitics still holds sway over markets. Major indexes closed lower, with financials and tech hardest hit, while energy stocks gained.
Oil supply fears are centered on the Strait of Hormuz, a chokepoint for roughly a fifth of global oil daily. Brent crude and West Texas Intermediate both rose on potential disruption risks. Higher oil means stickier inflation, reducing the Fed's ability to cut rates.
President Trump described the cease-fire with Iran as on "massive life support."
Bitcoin slid to around $73,000, and the broader crypto market fell 2.8% to $2.46 trillion. Analysts say Bitcoin faces significant resistance on the path to $80,000 without de-escalation and Brent crude falling below $100 a barrel.