Brent crude oil surged past $77 a barrel on Wednesday after President Donald Trump declared the ceasefire with Iran “over” following a new round of strikes across the Middle East, marking the sharpest escalation since the US and Iran agreed to a tentative peace deal three weeks ago.
Speaking at a NATO summit in Ankara, Turkey, Trump said he believed the Memorandum of Understanding signed on June 17 was finished, describing Iranian leaders as “sick people” and “scum” after Iran’s Islamic Revolutionary Guard Corps attacked 85 US military targets in Bahrain and Kuwait. The US had launched strikes on southern Iran and reimposed sanctions on Iranian oil sales earlier Wednesday in response to Iranian attacks on commercial vessels in the Strait of Hormuz.
Brent crude, the global oil benchmark, climbed to $78.93 a barrel shortly after 5 a.m. ET, jumping 6.4% on the day, according to CNN reporting. WTI, the US benchmark, rose 6.5% to $74.99 a barrel. The moves upward reversed weeks of falling prices as markets had grown optimistic about a potential deal to reopen the Strait of Hormuz, which carries roughly one-fifth of global oil supply.
The oil price jump triggered broader market volatility. Stock markets around the world fell sharply, with Dow and Nasdaq futures down 1.3% and 1.6% respectively, and S&P 500 futures 1% lower. Major European indexes fell around 2%, while South Korea’s KOSPI finished 5.4% lower and Japan’s Nikkei gave up 2.1%. “Equity market sentiment is under renewed pressure from a jump in oil prices,” said Neil Wilson, a strategist at investment bank Saxo. “Clearly higher oil prices raises stagflation fears and weighs on the growth outlook.”
The ceasefire Trump abandoned Wednesday had been extended on June 18 for 60 days to allow for broader negotiations on Iran’s nuclear program and US sanctions. That agreement followed an initial two-week ceasefire agreed on April 7-8, 2026, mediated by Pakistan and Qatar. Trump had previously warned of “economic catastrophe” if the war continued, but frustration over Iran’s alleged violations of the agreement—particularly attacks on commercial shipping—prompted the reversal.
Trump said he would allow his negotiators to continue talks with Iran but called the effort a “waste of time.” The US Treasury Department had authorized Iranian crude sales through August under the ceasefire terms; reversing that waiver removes a key incentive for Iran to maintain restraint. Iran’s foreign ministry responded by accusing the US of “treaty-breaking” and said the American strikes and sanctions had “rendered important and fundamental parts of the agreement ineffective.”
The flare-up threatens to overshadow the NATO summit and complicates efforts by mediators, including Pakistan and Qatar, to salvage the agreement. The European Union Aviation Safety Agency directed airlines to avoid airspace over Iran, Iraq, and Lebanon through August 31, citing the fragile state of the ceasefire and the potential for further military action.
Sources
- CNN — Trump’s statement that the MOU is “over,” oil price movements to $78.93 for Brent, market reaction, and details of the June 17 agreement signing
- Al Jazeera — Trump’s comments on the ceasefire, Iran’s response, and the US strikes on southern Iran
- Trading Economics — Brent crude price of $76.50 on July 8, 2026
