Oil prices surge to 5 % after Trump declares Iran ceasefire is over
US President Donald Trump declared that the ceasefire understanding with Iran was "over", signalling a sharp escalation in tensions after fresh military strikes and retaliatory attacks reignited fears of a wider regional conflict.
Speaking at the NATO Summit, Trump said he no longer wanted to engage with Tehran, accusing the Iranian leadership of dishonesty and warning against its nuclear ambitions. "For me, the memorandum of understanding is over. I don't want to deal with them anymore. They're liars... they're crazy. For me, it's over," Trump said.
The worsening security situation sent global energy markets sharply higher. Brent crude rose more than 5 per cent to nearly USD 78 per barrel, while US West Texas Intermediate crude climbed above USD 74 per barrel as investors feared disruptions to oil supplies from the Middle East.
Indian equity markets also reacted negatively to the escalating conflict. The BSE Sensex plunged over 1,700 points while the Nifty 50 fell nearly 2 per cent as higher crude prices and geopolitical uncertainty weighed on investor sentiment.
Meanwhile, European Union foreign policy chief Kaja Kallas said the latest attacks had complicated diplomatic efforts to end the conflict. NATO Secretary General Mark Rutte, however, defended the US strikes, describing them as "absolutely necessary" amid growing regional instability.
The Trump administration had earlier revoked a sanctions waiver that allowed certain purchases of Iranian oil, adding further pressure on Tehran and raising concerns over global energy supplies.
