President Trump announced that he's pulling out from the Iran Nuclear Deal, which was established during the Obama administration.
Trump reportedly told the French president, Emmanuel Macron, that he plans to withdraw, according to a New York Times article released Tuesday. President Trump is scheduled to make a formal announcement at 2 p.m. E.T.
According to the New York Times, the United States will reinstate all sanctions that had been waived as part of the agreement.
"We saw this coming, but it could still add a significant dose of uncertainty to an already indecisive market. Now that Trump walked away from the deal, it's hard to tell what a path forward might look like - and a plan won't be known for some time. Not exactly the clear picture investors like to see," said Mike Loewengart, E*TRADE's Vice President of Investment Strategy.
Despite reported lobbying from European officials and pressure from inside the White House, Trump plans to use the U.S.'s withdrawal to place other economic penalties on Iran.
"For investors, the lesson of today is what it has been all year: It's best to get comfortable, because volatility is here to stay," said Loewengart.
As of this reporting, oil was down nearly 3%.