Iran ceasefire is "over", says Trump — and oil jumps more than 6%
Trump declared the US-Iran ceasefire over after attacks on three oil tankers near the Strait of Hormuz. Oil surged past 75 dollars and stocks fell.
The ceasefire between the United States and Iran, in place since mid-June, is “over” — Donald Trump’s word, on Wednesday, after the two countries traded fresh strikes following attacks on three oil tankers near the Strait of Hormuz. Markets reacted instantly: oil surged more than 6% and US stocks tumbled.
What did Trump say about the Iran ceasefire?
“To me, I think it’s over,” the American president said, adding that dealing with Tehran had become “a waste of time” — while leaving the door ajar for negotiations to continue. In parallel, the US Treasury revoked the waiver that allowed Iranian oil to be sold on the global market, and US Central Command launched a series of retaliatory strikes over the tanker attacks.
Why did oil prices surge?
Because roughly a fifth of the world’s oil squeezes through Hormuz, and any threat to that passage moves prices within minutes. US crude jumped more than 6% to around 75 dollars a barrel and Brent, Europe’s benchmark, climbed towards 79 dollars — the biggest one-day move since early June. It is the mirror image of a few weeks ago, when the mid-June agreement had pushed Brent to lows and eased fuel prices in Portugal.
For Portugal the arithmetic is the usual one: pricier oil today means pricier petrol and diesel within days, and more pressure on an inflation rate that was already creeping up. The announcement also wrong-footed European diplomacy, days after a NATO summit already dominated by the defence bill.
None of this is settled: Washington says the ceasefire is over but admits talks may continue. Until then, the price-setter is nerves.
Image: Daniel Torok / Wikimedia Commons (public domain)