Trump Declares Iran Ceasefire Over, Heightening Tensions in Key Oil Chokepoint

President Donald Trump on Friday declared that a month-long ceasefire with Iran is "OVER!", a move that injects significant new risk into Mideast geopolitics and global energy markets. While Trump stated on Truth Social that the U.S. had agreed to an Iranian request to continue talks, the declaration ends a fragile truce established after a week of escalating military exchanges.

Ceasefire Collapses Amid Diplomatic Efforts

The announcement follows a renewed cycle of hostilities, including attacks on three Qatari and Saudi commercial tankers, which prompted retaliatory U.S. strikes on Iranian sites. Iran then responded with its own strikes on U.S. military installations in Gulf states. According to Iran’s Health Ministry, the U.S. strikes on Wednesday and Thursday resulted in 17 deaths and 115 injuries.

Iran disputed Trump's characterization of the events, with its Foreign Ministry stating it had not requested direct talks but had agreed to host a Qatari mediator in Tehran, according to state television. Regional diplomatic efforts are underway, with Qatari negotiators in Iran and Iranian Foreign Minister Abbas Araqchi scheduled to visit Oman to discuss the safe passage of ships through the Strait of Hormuz, as reported by ISNA.

U.S. officials have conditioned further progress on Iran publicly stating it will cease attacks on shipping and guarantee open passage through all lanes of the strait, a critical waterway for global trade.

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Market Impact: Oil Prices Spike on Hormuz Risk

The renewed conflict has had a direct impact on energy markets, pushing crude oil prices to their biggest weekly rise in eight weeks. The Strait of Hormuz, a chokepoint through which about a fifth of global oil and liquefied natural gas (LNG) passed before the conflict, is at the center of investor concerns over potential supply disruptions.

These geopolitical tensions are compounding tightness in the U.S. domestic market. The Energy Information Administration (EIA) reported that U.S. gasoline inventories fell by 1.9 million barrels last week, putting them nearly 10 million barrels below the five-year average for this time of year.