Crude oil prices jump over 5 % after US strikes Iran as Trump says ceasefire deal 'over'
PTC News Desk: Brent crude oil prices jumped more than 6% on Wednesday after US President Donald Trump said the MoU with Iran to end the conflict was "over" and that he did not want to engage with Tehran anymore.
Following his remarks, Brent crude rose 6.20% to $78.75 per barrel, while WTI crude gained 4.45% to $74.98 per barrel.
Speaking at the NATO summit in Ankara, Türkiye, Trump claimed the US had carried out a strong military strike against Iran. He told reporters that the US had "attacked very powerfully" and described Iranian leaders as "very dangerous."
Trump's statement that the agreement with Iran was effectively over raised concerns that diplomatic efforts between the two countries had collapsed. This increased fears of a wider conflict in the Middle East, especially around the Strait of Hormuz, a key global oil shipping route. Any threat to oil supplies from the region usually pushes crude prices higher.
The sharp rise in oil prices also affected the Indian stock market. Benchmark indices fell sharply on Wednesday due to growing geopolitical tensions, rising crude prices and weak global market sentiment.
By 1:55 pm, the BSE Sensex had dropped 1,112.76 points, or nearly 1.4%, to 77,071.96, while the NSE Nifty fell 350 points, or 1.45%, to 24,045.32.
The security situation in the Gulf worsened after Qatar accused Iran of attacking three commercial ships in the region.
One of the vessels, the Al Rekayyat, a large Qatari LNG tanker, was reportedly hit by a drone, causing a fire in its engine room. All crew members were reported safe and were being evacuated.
In a separate incident, maritime security officials said a Saudi-flagged crude oil tanker, believed to be the Wedyan supertanker, was damaged off the coast of Oman. However, the exact cause of the damage has not yet been confirmed.
The incidents have raised fresh concerns about the safety of ships passing through the Strait of Hormuz, a key shipping route that connects the Persian Gulf with the Gulf of Oman and the Arabian Sea. Millions of barrels of crude oil and petroleum products pass through this route every day on their way to Asia, Europe and North America.
- With inputs from agencies
