Crude oil prices jumped sharply on Wednesday after President Donald Trump declared the US-Iran ceasefire “over,” triggering renewed fears of supply disruptions through the Strait of Hormuz.
Brent crude futures for September delivery jumped 5.7 per cent to trade at around $78.41 per barrel, while US West Texas Intermediate futures rose 5.9 per cent to $74.60 a barrel.
Speaking at the NATO summit in Ankara, Turkey, Trump said he considered the ceasefire over and that he no longer wanted to deal with Iran, dismissing further negotiations as a waste of time.
His remarks followed a fresh round of US strikes on Iran, launched after Iranian attacks on three commercial vessels transiting the Strait of Hormuz, among them the Qatari tanker Al Rekayyat and a Saudi vessel. US Central Command said its forces struck more than 80 targets, including air defence systems, command and control networks and anti-ship missile capabilities, and hit over 60 Revolutionary Guard boats. Separately, the US Treasury Department revoked a waiver that had permitted Iran to sell its oil, a key revenue source for Tehran.
In retaliation, Iran said it had targeted 85 military installations in Bahrain and Kuwait, prompting air raid sirens in both countries. The Gulf Cooperation Council condemned the strikes, and the crossfire has raised fresh doubts over whether the fragile ceasefire can hold.
The escalation marks a sharp reversal from earlier expectations of a supply glut, after OPEC+ had moved to raise production quotas in recent months.
