Global oil prices jumped by more than 7% on Wednesday after U.S. President Donald Trump announced that the ceasefire with Iran had ended, following renewed military strikes in the Middle East.
The global benchmark Brent crude for September delivery climbed above $80 per barrel, rising 8.04% to $80.12 per barrel as of 15:20 GMT.
Meanwhile, U.S. West Texas Intermediate (WTI) crude for August delivery gained 7.65% to $75.83 per barrel.
Both Brent and WTI reached their highest levels in two weeks.
Speaking in Ankara on Wednesday, Trump declared that the ceasefire with Iran had ended, describing the Iranians as “liars.”
John Plassard, an analyst at Cité Gestion, told Agence France-Presse (AFP) that “the price per barrel rose sharply” on Wednesday morning but had not yet returned to the record highs reached during the conflict.
Plassard said Trump’s announcement should be viewed as a “temporary suspension” of the ceasefire agreement rather than its definitive end, arguing that the U.S. president’s statement that the memorandum of understanding had “ended” was also intended to increase pressure on Iran.
He added that Trump “does not want to halt the talks completely” for electoral reasons, noting that lower oil prices had been a key theme of his election campaign.
Reuters
