Oil prices surge again as Trump declares ceasefire ‘over’ with Iran
Oil prices surged on Wednesday after U.S. President Donald Trump declared the ceasefire with Iran was “over,” jolting energy markets and raising fresh concerns about the security of Gulf oil exports.
Brent crude jumped more than 5% to above $78 a barrel, while U.S. benchmark West Texas Intermediate climbed above $74, wiping out several days of market calm.
The U.S. also revoked a waiver allowing Iran to sell oil, as American forces struck more than 80 targets in Iran that officials said were linked to attacks on commercial shipping.
Iran retaliated with strikes on U.S. military sites in Bahrain and Kuwait, extending the conflict and increasing the risk of further disruption in the Gulf.
Shipping through the Strait of Hormuz remains well below normal after attacks this week on three commercial vessels, including a Saudi oil tanker and a Qatari LNG carrier, threatening another squeeze on global energy supplies.
Energy agency weighs record oil release as Iran tensions mount
Governments around the world are scrambling to contain the escalating shock to energy markets from the Iran war, with oil traders tracking disruptions to Gulf exports and tanker traffic as officials weigh emergency measures to stabilize supplies.
Officials from the International Energy Agency are discussing what could be the largest coordinated release of strategic oil reserves in history – about 300 million to 400 million barrels – far exceeding the 182 million barrels released in 2022 after Russia’s invasion of Ukraine, Bloomberg reports.
Saudi Arabia, the UAE and other Gulf producers are assessing how much crude they can continue exporting as tanker insurers and shipping companies review the risks of operating in the region.
Many cargoes have been delayed and freight rates for vessels willing to enter the Gulf have surged as the conflict intensifies.
At the same time, officials are studying whether alternative routes – including Saudi pipelines that bypass the Strait of Hormuz and export terminals on the Red Sea – can help keep oil moving if shipping disruptions worsen, The Wall Street Journal reports.
The U.S. and its allies are also discussing naval measures to safeguard commercial traffic through the Gulf.
Energy traders say the combination of possible supply outages, tanker disruptions and a record emergency stockpile release has turned the oil market into a day-to-day calculation of how quickly governments can offset the barrels at risk from the conflict.
