Global stocks and bond prices tumbled as investors fled risk assets after US President Donald Trump said the memorandum of understanding signed with Iran to end the Gulf conflict was “over”.

Wall Street opened lower as rebuilding tensions in the Middle East weighed on sentiment, further bolstered by a new warning from the International Monetary Fund that the conflict will cut into global growth this year.

The Dow Jones Industrial Average was down nearly 1% in early trading, with the S&P 500 falling 0.52% and the Nasdaq Composite dropping 0.38%.