WTI crude futures rise sharply as U.S. ends diplomatic efforts with Iran, raising supply disruption fears in key energy markets.
West Texas Intermediate crude futures climbed 3.2% to $74.30 during European trading, reaching a two-week high. The surge followed President Trump’s confirmation that the U.S. has abandoned its memorandum of understanding with Iran, heightening risks of renewed conflict in the Middle East.
Oil prices had previously surged nearly 70% in early March when tensions escalated, and Iran threatened to close the Strait of Hormuz. The strait remains critical, facilitating nearly one-fifth of global oil supply. Analysts warn further escalation could push prices higher.
The U.S. Central Command confirmed strikes on Iranian military infrastructure after Tehran targeted commercial ships in the strait. Currencies of oil-importing economies face pressure as energy costs rise.