Crude oil prices surge as Trump says interim agreement with Iran is over
New Delhi, July 8: International Oil prices surged by nearly 6% after US President Donald Trump said today that the interim agreement with Iran is “over,” though he will allow talks to continue.
The sharp rally in oil prices may have a ripple effect across global markets, especially for import-dependent nations.
“For me, I think it’s over,” Trump responded when asked about the status of the ceasefire.
“They are scum… They are sick people…. It’s just a waste of time dealing with them,” he told journalists on in Ankara, Turkey, on the sidelines of the two-day NATO summit.
His remarks came after the US carried out strikes on Iran in response to attacks on three ships in the Strait of Hormuz.
Iran responded by targeting US military bases in Bahrain and Kuwait.
Brent crude climbed 5.6% to trade above $78 a barrel, while US benchmark crude rose 5.8% to $74.55 a barrel.
Crude prices had dropped recently from spikes well above $100 a barrel to around the levels they were at before the US and Israel war with Iran began in late February this year.
As part of their interim deal to end the war, Iran and the United States agreed to allow ships to pass through the strait without paying charges for 60 days.
However, Iran has insisted it must control the vessels’ routes and vowed to later charge fees for passage. Such a move would upend decades of practice in the waterway.
The ships attacked Tuesday all appeared to be using a route close to Oman’s shore, rather than one ordered by Tehran.
The renewed disruption in oil markets has also come amid growing concerns that the rally in artificial intelligence-related stocks has driven valuations beyond the productivity gains and profits that are likely to result from heavy investments in semiconductor manufacturing and data centres, the news report stated. (BVI)
