Crude oil prices surged sharply amid escalating tensions in the Middle East, stoking fears of further disruptions to global energy supply chains. Former U.S. President Donald Trump declared that, in his view, the ceasefire with Iran has ended — a statement that reintroduced uncertainty into markets and sent oil prices soaring.
Trump’s Remarks Fuel Market Volatility
Markets reacted swiftly to Trump’s comments, which included renewed criticism of Iran and the revocation of a waiver previously allowing Tehran to export crude oil. Brent crude climbed more than 6%, trading above $78 per barrel, while West Texas Intermediate (WTI) hovered near $74.50.
Growing Concerns Over Strait of Hormuz
The rally accelerated amid growing fears of escalation in the strategically vital Strait of Hormuz — following recent attacks on vessels, including a Qatari liquefied natural gas (LNG) carrier and a Saudi oil tanker. In response, Tehran claimed it had targeted 85 U.S. military facilities in Bahrain and Kuwait, accusing Washington of violating the ceasefire.
Supply Disruptions Loom Large
This renewed flare-up raises the specter of fresh disruptions to global energy supplies. Shipping companies and regional producers are increasingly reluctant to use the Strait of Hormuz — a critical maritime chokepoint through which nearly 20% of the world’s oil passes.
Shift From Oversupply Expectations
The sudden shift marks a sharp reversal from earlier expectations of oversupply. Just weeks ago, OPEC+ had agreed to raise production quotas, and Middle Eastern producers were ramping up output. Now, geopolitical risk is once again dominating the oil market narrative.