ANKARA, Turkiye: Global oil prices surged more than 7% on Wednesday after US President Donald Trump declared that the ceasefire between the United States and Iran was over and warned that Washington was preparing to launch further military strikes on Iran tonight, raising fresh concerns over energy supplies from the Middle East.
Brent crude futures rose by $5.93, or nearly 8%, to $80.09 a barrel, their highest level since June 22, while US West Texas Intermediate (WTI) crude futures gained $5.25, or 7.5%, to $75.69 a barrel, also reaching a two-week high.
Speaking to reporters during a bilateral meeting with Ukrainian President Volodymyr Zelensky on the sidelines of the NATO summit in Ankara, Trump said the United States would carry out further strikes on Iran following overnight attacks.
“We hit them very hard last night … we’re probably going to hit them hard again tonight,” Trump said. “I’ll give them a little warning, we’re going to hit them hard tonight.”
The US president said he believed the ceasefire with Iran was effectively over. “I think it’s over,” Trump said. “I don’t want to deal with them anymore.”
He added that negotiations with Tehran could continue but described them as “a waste of time”.
Trump also suggested the United States could take control of Kharg Island, Iran’s main crude oil export terminal, and floated the possibility of reimposing a US naval blockade on Iranian shipping in the Strait of Hormuz.
Trump reiterated that the United States would not allow Iran to obtain a nuclear weapon.
“We don’t want them to have nuclear weapons, and it’s de-nuking, or denuclearisation, and I think we’ve made a lot of progress,” he said.
He added that discussions on Iran’s nuclear programme had produced significant progress despite the renewed military escalation.
Markets react to escalating tensions
The renewed tensions triggered a sharp rally in global oil markets amid fears of further disruption to energy exports from the Gulf.
The latest gains pushed Brent crude above $80 per barrel, while WTI approached $76 per barrel after both benchmarks had already risen sharply a day earlier.
The escalation revived concerns over shipping through the Strait of Hormuz after three commercial vessels were attacked near the strategic waterway earlier this week.
Before the outbreak of the Iran conflict, about one-fifth of the world’s oil supply passed through the Strait of Hormuz.
Previous disruptions and Iran’s temporary blockade of the route had driven oil prices above $100 per barrel at the height of the crisis.
Despite the latest surge, Trump sought to downplay the impact on energy markets.
“Any time we hit Iran, the price goes up a little bit, $2,” he said, agreeing with a reporter that renewed fighting could push oil prices higher but insisting the increase would remain limited.
US strikes and tanker attacks
According to US Central Command, American forces launched a series of overnight air strikes inside Iran on Tuesday, targeting more than 80 sites, including military installations and vessels operated by Iran’s Islamic Revolutionary Guard Corps.
The military action followed Iranian attacks on three commercial vessels in and near the Strait of Hormuz on Tuesday.
The escalation has renewed concerns over freedom of navigation through one of the world’s most important maritime energy corridors.
Meanwhile, US financial markets also came under pressure as investors reacted to the renewed conflict alongside concerns over technology stocks.
By mid-morning trading, the S&P 500 and Nasdaq Composite had each fallen by more than 1%, while the Dow Jones Industrial Average dropped by more than 800 points. The Russell 2000 index, which tracks small and mid-capitalisation companies, declined 1.8%.
The rise in crude prices also threatened to reverse recent declines in fuel costs.
According to data tracked by the American Automobile Association (AAA) and cited by NBC News, the national average price of petrol in the United States had fallen from a peak of $4.56 per gallon in May to $3.79 on Wednesday morning.
