Oil Prices Jump After Trump Says Iran Ceasefire is ‘Over’

Oil prices have surged more than 6% after US President Donald Trump stated that the interim agreement with Iran is ‘over’, despite allowing talks to continue. The price of Brent crude oil jumped 6.3% to $78.80 a barrel, while US benchmark crude surged 6.4% to $75 a barrel. This development has raised uncertainties over inflation and other economic trends, and has coincided with concerns over the valuation of artificial intelligence-related shares. Trump made the comments following US strikes on Iran in reaction to attacks on three ships in the Strait of Hormuz. The upsets for oil markets have also led to a decline in stock markets, with Germany’s DAX shedding 2.4% and the CAC 40 in Paris giving up 2.2%. The future for the S&P 500 edged 1% lower and that for the Dow Jones Industrial Average was down 1.3%. In Asian trading, Tokyo’s Nikkei 225 lost 2.1% and the Kospi in South Korea shed 5.4%. The surge in oil prices has been attributed to the geopolitical tensions between the US and Iran, and the potential disruption to oil supplies. The situation is being closely monitored, with analysts warning that a further deterioration could weigh on equity valuations and lead to rising stress in technology.