Dow down 1.09%, or 500 points, as S&P 500 sees a small loss and tech-heavy Nasdaq rises slightly

• Middle East crisis live

US stock markets fell on Wednesday as the US continued strikes on Iran and the Federal Reserve flagged concerns that would warrant higher interest rates.

Donald Trump’s declaration at the Nato summit in Ankara that the Iran-US ceasefire is over sent oil prices sharply higher on Wednesday. Brent crude, the global benchmark, jumped more than 5% to crest $80 a barrel. US stocks fell in step, with the Dow down 1.09%, or 500 points, at closing Wednesday afternoon. The S&P 500 saw a small loss while the tech-heavy Nasdaq rose slightly. Global stocks had fallen earlier in the day, with the UK’s FTSE 100 down 1% as Japan’s Nikkei fell 2.1%.

US president veers from praising the alliance to threatening Iran and confusing world leaders’ names

Having arrived at Nato’s annual summit under a familiar cloud of resentment and grievance, Donald Trump’s farewell message on Wednesday was an unlikely tale of love and darkness.

Addressing journalists in the presence of his Ukrainian counterpart, Volodymyr Zelenskyy, the US president surprised everyone by directing his affections at an alliance he spent much of the previous day spewing bile over, citing the now well-worn gripe about Greenland, among others.

Hostilities between US and Iran resume as US president lashes out at ‘vicious, violent people’. Plus the fallout from the USMNT’s exit from the Fifa World Cup

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Good morning. Hostilities have resumed between the US and Iran. Tehran accused the US of violating the agreement intended to end the war, after the US military launched strikes around the strait of Hormuz and revoked a temporary sanctions waiver for Iranian oil exports. The attacks were the latest in a string of ceasefire violations by the two sides, despite a truce that came into effect in April, and have led to an immediate 3% rise in oil prices.

Speaking at the Nato summit in Ankara, Donald Trump said the memorandum of understanding with Iran was over and called the country’s leaders “vicious, violent people” whom he would not deal with because they were, in the US president’s words, “scum”. He nevertheless appeared to indicate that talks would continue. Nato’s ⁠secretary general, Mark Rutte, backed the US attacks, saying: “When you ​have ‌a ‌ceasefire and Iran ‌is basically violating the ceasefire, I think it is ‌totally crucial that the ​US forcefully react.”

What occurred to break the fragile ceasefire? The US military said that it had hit more than 80 targets in the early hours of Wednesday in response to Iranian attacks on three commercial vessels ⁠passing through the strait of Hormuz on Tuesday. Iran responded by launching attacks on US military sites in Bahrain and Kuwait. The Islamic Revolutionary Guard Corps said 85 facilities had been targeted.

How could Democrats replace Platner? It is possible for Democrats to select a new Senate nominee in Maine, but the clock is ticking. To have a new candidate on the ballot for November’s midterm elections, Platner needs to end his campaign by 5pm ET on 13 July, according to state law. That would give the Democrats a two-week window – until 5pm ET on 27 July – to pick a replacement.

Ceasefire appears close to collapse as two militaries target each other after after Iran strikes three commercial vessels

Iran and the US have threatened to reignite their conflict after the most extensive exchange of fire since an interim deal was signed last month.

On a chaotic day at the Nato summit in Ankara, Donald Trump said the US would probably hit the country again on Wednesday evening and renewed his threat to take control of the strategic Kharg Island in the strait of Hormuz - a move that could provoke Iran to hit energy installations across the Gulf states.

Explosions and flames were seen in Iran after the US military launched strikes on targets around the strait of Hormuz in response to Iranian attacks on three commercial vessels near Oman. US officials said the strikes hit more than 80 targets, including air defence systems, command and control networks, anti-ship missile capabilities and more than 60 Islamic Revolutionary Guard Corps small boats. The US also revoked a temporary sanctions waiver for Tehran to export oil. Iran accused the US of violating the agreement aimed at ending the war and responded by launching attacks on US military sites in Bahrain and Kuwait

President calls Iranian leadership ‘scum’, rails against alliance, repeats demand for Greenland and threatens Spain

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Donald Trump has declared that the ceasefire with Iran is over as he arrived at the Nato summit in Ankara, launching an angry broadside in which he complained about the military alliance and repeated his demand for Greenland.

The US president, sitting alongside the Nato secretary general, Mark Rutte, called Iran’s leadership scum and “sick people”, and added that he was “very upset” with the alliance and even threatened to cut off all trade with Spain in a row over defence spending.

About 57% of polled Americans also believe economy is worsening in grim portrait of cost of living crisis, according to Harris survey for the Guardian

Ninety-five per cent of Americans believe the US is suffering an affordability crisis, as many report trouble with the rising cost of groceries and gas, according to an exclusive new poll conducted for the Guardian.

The survey, conducted by Harris Poll, paints a bleak picture of how people feel about the US economy amid the war in Iran and ahead of the key midterm elections this fall.