Story
Oil Prices Surge as Trump Declares Interim Iran Deal 'Over'
Summary
Oil prices rose over 5% on Wednesday following comments from U.S. President Donald Trump that a fragile truce with Iran was "over." The declaration comes amid renewed military exchanges between the two nations in the Persian Gulf.
Oil prices increased sharply on Wednesday amid escalating tensions between the United States and Iran. By mid-morning ET, Brent crude, the global benchmark, had risen by 5.2% to $78.01 a barrel, while U.S. West Texas Intermediate crude gained 5.1% to $74.00 a barrel.
The market surge followed comments from U.S. President Donald Trump at a NATO summit in Turkey, where he cast doubt on a fragile peace agreement with Tehran. "As far as I’m concerned, it’s over," Trump stated, accusing Iran of what he termed "double-dealing" in relation to the deal.
The remarks were made after a recent exchange of military strikes. According to Iranian state media, the Islamic Revolutionary Guards Corps claimed it had attacked U.S. military sites in Kuwait and Bahrain. The Pentagon stated its own strikes were a response to recent Iranian attacks on commercial vessels in the Strait of Hormuz, a vital channel for global oil shipping. The U.S. also withdrew a sanctions waiver that had allowed Iran to sell its oil internationally.
AdThese hostilities threaten to derail a framework peace deal agreed upon in June, which had caused crude prices to fall and had seen shipping flows improve through the Strait of Hormuz. Peace negotiations are reportedly paused following the death of former Iranian Supreme Leader Ayatollah Ali Khamenei in February. The renewed conflict has raised concerns about the stability of future supply from the region.