US stock markets opened lower on May 8 (local time) as tensions between the United States and Iran escalated sharply. At 9:35 AM on the New York Stock Exchange, the Dow Jones Industrial Average fell 546.12 points (1.03%) to 52,379.03, the S&P 500 declined 45.90 points (0.61%) to 7,457.95, and the Nasdaq Composite dropped 116.45 points (0.45%) to 25,702.24. President Donald Trump declared that the memorandum of understanding (MOU) with Iran "seems finished" and warned he no longer wanted to be involved with Tehran. The renewed conflict disrupted market expectations that Iranian oil would return to supply following the MOU, according to WisdomTree's Anika Gupta, who noted the removal of oil sanction waivers eliminated a key incentive for Iran's compliance.
Trump Declares Iran MOU 'Finished' and Issues Attack Warning
President Trump stated the MOU with Iran "seems finished" and said he no longer wanted to be "entangled with Tehran," calling Iranians "sick people." During a meeting with Ukrainian President Volodymyr Zelenskyy, Trump said, "Iran will probably attack tonight." He warned that the US could "remove power facilities and water facilities if necessary" but added he did not want to do so, and stated the US "could take control of Kharg Island." Trump also said the US might reimpose a maritime blockade on Iran.
Analyst Warns Oil Sanction Waiver Removal Disrupts Supply Expectations
Anika Gupta, Director of Macroeconomic Research at WisdomTree, stated that after the MOU, there were expectations that oil supply would flow back into the market and inflation expectations were declining. She said the deterioration in US-Iran relations was "sounding an alarm." Gupta explained, "The key change we're seeing now is that the oil sanction waiver on Iranian oil has disappeared. This removes a very important incentive to keep Iran in compliance with the agreement."
Energy Stocks Gain While Airline Stocks Fall on Oil Price Surge
All sectors except technology and energy showed weakness. Energy stocks rose uniformly as oil prices increased. ConocoPhillips and Marathon Petroleum rose 1.34% and 3.11%, respectively. Airline stocks declined uniformly due to the oil price surge. United Airlines and Delta Air Lines fell 2.59% and 1.93%, respectively. Bath & Body Works dropped 6.35% after Goldman Sachs downgraded its investment rating from neutral to sell.
European Stock Markets Decline Following US Opening Losses
European markets declined uniformly. The EuroStoxx 50 index traded down 1.51% at 6,224.72. Germany's DAX index fell 1.72%. The UK's FTSE 100 index and France's CAC 40 index declined 0.96% and 1.62%, respectively. International oil prices rose. At the same time, the near-month August 2026 delivery West Texas Intermediate (WTI) crude oil price rose 4.95% to $73.93 per barrel.
FAQ
Why did US stocks open lower on May 8?
US stocks opened lower on May 8 (local time) due to escalating tensions between the United States and Iran. President Trump declared the memorandum of understanding with Iran "seems finished" and warned of potential military actions, disrupting market expectations for resumed Iranian oil supply.
How did the end of the Iran MOU affect energy and airline stocks?
Energy stocks rose uniformly as oil prices increased following the collapse of the Iran MOU, with ConocoPhillips gaining 1.34% and Marathon Petroleum rising 3.11%. Airline stocks declined due to higher oil prices, with United Airlines falling 2.59% and Delta Air Lines dropping 1.93%.
