Oil Prices Jump, Global Stocks Fall After Trump Declares Iran Ceasefire Over

ERBIL (Kurdistan24) – Oil prices surged and global stock markets fell on Wednesday after U.S. President Donald Trump declared that the ceasefire with Iran was over, raising fears of renewed conflict in the Middle East.

The latest escalation followed Iranian attacks on ships transiting the strategically important Strait of Hormuz, a vital route for global oil exports.

Speaking at a NATO summit in Turkey, Trump said the ceasefire was "over," while indicating that further diplomatic talks remained possible.

The renewed tensions immediately rattled financial markets, reversing recent declines in oil prices that had brought them closer to pre-conflict levels.

International benchmark Brent crude climbed more than 5% to around $78 per barrel, while U.S. benchmark West Texas Intermediate (WTI) also gained about 5% before both contracts trimmed some of their earlier gains later in the day.

Global equity markets also came under pressure as investors sought safer assets. On Wall Street, the Dow Jones Industrial Average fell 1.0% to 52,412.15 shortly after trading opened. The broader S&P 500 and the technology-heavy Nasdaq Composite each declined by about 0.5%.

Sam Stovall, chief investment strategist at CFRA, said Trump's remarks had "triggered a sell-off" across financial markets.

European stocks also retreated, with France's CAC 40 and Germany's DAX each down around 1.8% in afternoon trading, while Britain's FTSE 100 lost 1.2%.

Market analysts warned that the renewed conflict had heightened uncertainty for investors.

"Geopolitical risks are rising," said Kathleen Brooks, research director at trading group XTB.

Fawad Razaqzada, market analyst at Forex.com, said investors had hoped the first half of the year’s volatility was coming to an end.

"After a long and eventful first half of the year dominated by the U.S.-Israel war on Iran and Trump's constant flip-flopping, the last thing investors needed with the summer holidays approaching was a return of the same geopolitical environment," he said. "Unfortunately, it looks like we could be heading back to that."

The United States launched extensive strikes on Iran on Tuesday following attacks on commercial vessels in the Strait of Hormuz, prompting retaliatory Iranian attacks on American military bases in the Gulf. Washington also revoked a temporary sanctions waiver that had allowed limited exports of Iranian oil, adding further pressure to global energy markets.