Trump Ends Iran Ceasefire But Agrees to Talks as Gulf Tensions Spike Oil Prices

U.S. President Donald Trump announced that a month-old ceasefire with Iran is over, though he confirmed that diplomatic talks between the two nations will continue. The declaration follows a significant escalation in hostilities this week in the Persian Gulf, heightening geopolitical risk and pushing energy prices higher.

Ceasefire Over, Talks to Continue

In a post on his Truth Social platform, President Trump stated that the U.S. had agreed to Iran's request to continue talks. "We have agreed to do so, but the United States has stated to them, in no uncertain terms, that the Cease Fire is OVER!" he wrote.

Iranian officials disputed Trump's characterization of the events. According to Iranian state television, Tehran did not request direct talks with Washington but agreed to host a Qatari mediator. A source familiar with the matter told Reuters that Qatari negotiators were in Iran on Friday to help de-escalate the situation.

Market Impact and Strait of Hormuz

The renewed conflict has had a direct impact on global energy markets. Crude oil prices posted their largest weekly increase in eight weeks amid fears of supply disruptions. The tensions are centered on the Strait of Hormuz, a critical waterway that handled approximately one-fifth of global oil supplies before the conflict began.

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This week, three Qatari and Saudi commercial tankers came under fire, prompting retaliatory U.S. strikes on Iranian sites. Iran then responded with strikes on U.S. military installations in Gulf states. Senior U.S. officials said on Friday that Washington is demanding Iran publicly commit to ending all attacks on shipping in the strait.

Escalating Military Posture

The diplomatic uncertainty comes amid heightened military rhetoric. Trump also posted that he had authorized the U.S. military to strike Iran if it attempted to assassinate him, a threat he said was based on intelligence shared by Israel, as reported by The Wall Street Journal and other outlets.

U.S. strikes in Iran on Wednesday and Thursday resulted in at least 17 deaths and 115 injuries, according to a statement from Iran’s Health Ministry. The interim deal reached last month was intended to de-escalate a conflict that has lasted five months, killed thousands, and raised concerns of a global economic downturn.