Oil prices climb as Trump declares Iran truce over again

Oil prices rose after Donald Trump declared the Iran ceasefire over, reviving fears of shipping disruption near the Strait of Hormuz.

Brent futures advanced more than 6% in London, while West Texas Intermediate also moved sharply higher. The jump followed Trump’s comments at a press conference in Ankara, where he said he no longer wanted to deal with Iran.

Ankara remarks end truce hopes

Trump also said US negotiators could keep speaking with counterparts from Tehran, but added that he believed “they’re wasting their time.” That combination left markets facing two conflicting signals: diplomacy has not formally stopped, but the president’s own language pointed to a breakdown in confidence.

The immediate trigger was a new military exchange. US forces completed strikes on more than 80 targets in Iran overnight after Iranian attacks on merchant shipping a day earlier, according to the source account.

Those shipping incidents involved a Qatari liquefied natural gas carrier and two large oil tankers. The three attacks were described as the heaviest day of shipping strikes since an interim peace arrangement took effect in June.

Hormuz shipping risks return

The Strait of Hormuz is the central pressure point in this story because it connects major Persian Gulf oil producers with buyers abroad. Any added danger around that route can force shipowners, insurers and energy producers to reassess voyages, pricing and delivery schedules.

The ceasefire had cooled some regional risk, helping oil futures fall in the second quarter. The latest rebound shows how quickly that premium can return when merchant vessels and energy cargoes are pulled back into the conflict.

Tensions around the waterway had not disappeared during the truce. Tehran has argued that it controls the strait and that transits without its approval are not valid, and it told the United Nations shipping watchdog on Tuesday that it has the right to control parts of the passage.

Energy markets face fresh strain

The direct market effect is visible first in crude benchmarks, but the wider impact depends on whether the shipping risk spreads. Higher crude prices can lift costs for refiners, airlines, freight operators and consumers if the increase lasts long enough to feed into fuel contracts and pump prices.

For regional producers, the problem is less about reserves than access. If vessels, crews or insurers judge Hormuz passages to be riskier, producers linked to the Persian Gulf may face higher transport costs even before any physical supply loss appears.

The first scenario is containment. If talks continue and there are no further attacks on merchant ships, traders may treat the price spike as a security premium rather than a lasting supply shock; the global effect would be narrower inflation pressure, while energy firms and shippers would still price in extra caution on Gulf routes.

The second scenario is escalation. If strikes and ship attacks continue, the mechanism shifts from sentiment to logistics: shipping delays, higher insurance costs and rerouted cargoes could keep oil elevated, complicate the Trump administration’s handling of energy prices and force producers, traders and tanker operators to manage a more expensive corridor.

The open questions are concrete. Markets need to know whether US and Iranian negotiators keep meeting, whether Iran targets more commercial vessels, and whether shipowners continue using the Strait of Hormuz at normal levels after the latest attacks.