US stocks slide as tensions between Iran and Israel escalate
US stocks closed lower on Tuesday, giving back their gains in the previous session, as the hostilities between Israel and Iran extended into a fifth day.
The blue-chip S&P 500 shed 0.8 per cent and the tech-heavy Nasdaq Composite fell 0.9 per cent as the dollar rallied and oil prices climbed.
Treasuries rose, with the 10-year yield down 0.07 percentage points at 4.39 per cent. Yields move inversely to prices.
Macron says seeking regime change in Iran would be the ‘biggest error’
Emmanuel Macron, president of France, said it would be the “biggest error” to seek regime change in Iran, although he did not address Israel or the US by name.
Speaking at the G7 summit in Canada, Macron said ousting the leaders of Iran “by military means . . . would lead to chaos” as it had done elsewhere in the past, referring to Libya and Iraq.
The remarks came as US President Donald Trump increased the rhetoric on Tehran on Tuesday and his vice-president appeared to suggest Washington might step up its involvement in Israel’s attack on Iran.
Macron instead urged Trump to catalyse peace talks. “We need the US to bring everyone back to the table,” he said.
US forms Mideast task force but has no exit plans for its citizens
The US state department has set up a Middle East task force to co-ordinate support for citizens, diplomatic missions and staff but declined to outline any plans to help Americans leave the region.
Americans can call the task force’s number for information, state department spokesperson Tammy Bruce said, but she would not discuss any exit plans, even from Israel.
The US embassy in Jerusalem has said it is “not in a position at this time to evacuate or directly assist Americans in departing Israel”.
Bruce would not comment on the military decisions Trump was weighing on or whether the US would like to see regime change in Iran.