Global oil prices jumped more than five per cent on Wednesday after United States President Donald Trump declared that the ceasefire between Washington and Tehran was effectively over, following a fresh exchange of military strikes between the two countries.
Speaking at the NATO summit in Ankara, Turkey, Trump said he no longer considered the ceasefire agreement with Iran to be in force and dismissed ongoing diplomatic efforts as futile.
“I don’t want to deal with them anymore. They’re scum,” Trump told reporters. “They’re sick people, they’re led by sick people. As far as I’m concerned, it’s over.” He added that although negotiators could continue talks, he believed they were “wasting their time.”
The remarks came hours after the United States launched a new wave of strikes on Iran, targeting more than 80 locations in response to attacks on three commercial vessels in the Strait of Hormuz. According to the US Central Command, the strikes hit Iranian air defence systems, command-and-control networks, coastal radar installations, anti-ship missile facilities and dozens of Islamic Revolutionary Guard Corps boats operating around the strategic waterway.
Iran has not directly claimed responsibility for the attacks on the tankers but responded by targeting US military installations in Bahrain and Kuwait, further escalating tensions across the Gulf region.
Iranian military sources said several coastal bases and facilities in Hormozgan and Mahshar provinces were struck during the American operation. Iranian media also reported attacks in the Bushehr region, while the Islamic Revolutionary Guards Corps confirmed that an Iranian soldier was killed by shrapnel in Bandar Mashahr.
The latest hostilities mark a dramatic setback for a ceasefire agreement reached last month when Tehran and Washington signed a memorandum of understanding aimed at ending hostilities and extending peace efforts across the region. However, both sides have since accused each other of violating the truce.
NATO Secretary-General Mark Rutte defended the latest US military action, describing the strikes as “absolutely necessary” and accusing Iran of violating the ceasefire. Iran’s Parliament Speaker, Mohammad Bagher Ghalibaf, countered that it was Washington that breached the agreement.
The renewed conflict sent shockwaves through global energy markets. International benchmark Brent crude rose 5.3 per cent to $78.09 per barrel, while US benchmark West Texas Intermediate climbed 5.4 per cent to $74.23 per barrel as traders reacted to fears of further disruptions to oil supplies through the Strait of Hormuz, one of the world’s most important shipping routes for crude oil.
Analysts said the resurgence of hostilities between the United States and Iran has reignited concerns about stability in the Middle East and the potential impact on global energy supplies, with investors closely monitoring developments in the Gulf.