Keep an eye on "global oil prices," which continue to surge by more than 5% after "Trump" announced the ceasefire agreement was over.

Keep an eye on "global oil prices," which have surged more than 5% after President Trump announced the end of the ceasefire, sparking concerns about oil supply and global inflation risks.

On July 8, 2569 at 15.48:XNUMX p.m., CNBC news agency reported that Global crude oil prices rose more than 5% in Wednesday's (July 8) trading. Following a new wave of US attacks on Iran in retaliation for the attack on three commercial ships passing through the Strait of Hormuz, investors are concerned that conflict in the Middle East could escalate and impact global oil supply.

West Texas Intermediate (WTI) crude oil futures for August delivery surged 5.2% to $74.13 per barrel, while Brent crude oil futures for September delivery rose 5.2% to $78.04 per barrel.

The move comes after President Donald Trump said during the NATO summit in Ankara, Turkey, that the ceasefire agreement between the United States and Iran was over.

"As for me, I think it's over… I don't want to negotiate with them anymore because I see it as a waste of time."

Trump stated that while the U.S. delegation wanted to push for peace negotiations, he saw no point in continuing talks with Iran.

The statement comes after the U.S. Central Command (CENTCOM) revealed it had launched a series of intense strikes against targets in Iran in retaliation for the attack on three merchant ships sailing through the Strait of Hormuz on Tuesday, stating that Iran's actions constituted a clear violation of the ceasefire and posed a threat to freedom of navigation.

Previously, the ceasefire agreement reached by both sides last month allowed commercial shipping through the Strait of Hormuz, a vital global oil shipping route, to resume normal operation after months of disruption.

However, recent developments reflect a renewed strain on relations between the two sides, with the U.S. Treasury Department revoking a exemption that previously allowed Iran to sell oil on the market.

A U.S. government official revealed that Iran would only benefit if it behaved appropriately, emphasizing that attacking ships in the Strait of Hormuz is unacceptable to the U.S. and will face consequences.

The Iranian Foreign Ministry issued a statement condemning the US attack as a violation of the memorandum of understanding signed by both sides last month to end the war, and affirmed that the Iranian military is ready to defend its sovereignty and security against US aggression.

The U.S.-led Joint Maritime Information Center (JMIC) revealed that three commercial vessels were attacked in or near the Strait of Hormuz on Tuesday, raising the risk level for navigation in the area to severe and warning of a high possibility of further attacks.

Analysts from Ortus Advisors believe that Iran may still lack the incentive to rush into a deal with the United States, as Tehran's bargaining power may increase with the US midterm elections in November approaching. Meanwhile, soaring energy prices could create inflationary pressures and become a key political issue for the Trump administration.

Analysts also stated that if oil prices continue to rise, U.S. government bond yields and inflationary pressures could increase, potentially forcing the Federal Reserve (Fed) to implement a tighter monetary policy than the market anticipates.

refer : cnbc.com

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