Oil markets react to Trump’s statement ending a fragile Iran ceasefire, raising fears of renewed supply disruptions in the Strait of Hormuz.
Oil prices climbed sharply after President Trump declared the ceasefire agreement with Iran effectively over, signaling a likely resumption of hostilities. WTI crude rose 2.5% on the news, nearing $74 as traders priced in renewed risks to Middle East supply routes.
The Strait of Hormuz, a critical chokepoint for global oil shipments, faces potential closure amid escalating tensions. Prior ceasefire efforts had offered only limited stability, with markets remaining volatile due to persistent geopolitical risks.
The immediate market reaction saw crude futures extend gains, reflecting concerns over supply constraints. Analysts warn further escalation could push prices higher in the near term.