Oil Prices Surge Over 6% as Trump Announces End to Iran Ceasefire

Oil prices jumped over 6% after US President Trump declared the Iran ceasefire 'over', sparking concerns of supply disruptions. This surge in oil prices weighed down US stock markets, with Dow futures and the S&P 500 trading lower. European energy stocks, however, rose as oil prices surged. President Trump's announcement also triggered a sharp increase in gold prices as investors sought safe-haven assets. The situation remains fluid as tensions between the US and Iran escalate.

Oil prices jumped more than 6% after President Trump said the ceasefire with Iran was "over," further escalating tensions in the Gulf. Brent crude surged 6.3% to $78.80 a barrel and U.S. benchmark WTI crude climbed 6.4% to $75.00 a barrel as traders priced in the risk of renewed conflict disrupting the Strait of Hormuz, a chokepoint for roughly a fifth of global oil supply .

Trump made the comments on the sidelines of the NATO summit in Ankara, Turkey, following U.S. strikes on Iran in response to attacks on three ships in the Strait of Hormuz. He said American forces would "probably hit them again tonight" and floated the possibility of U.S. forces taking Kharg Island, a key export hub for Iranian crude . At the same summit, Trump also ordered an immediate halt to trade with NATO ally Spain over its refusal to meet the alliance's 5% of GDP defense spending target and its unwillingness to let U.S. forces use Spanish bases for Iran-related operations .

The oil spike weighed on U.S. equities, with the Dow Jones Industrial Average and S&P 500 trading lower as investors weighed the risk of a broader regional conflict. European energy stocks moved higher on the crude rally, while gold and the U.S. dollar rose as investors sought safe-haven assets amid the escalation .

The situation remains fluid: further escalation could tighten Hormuz shipping flows and push oil prices higher still, feeding into inflation and pressuring consumer spending, while any de-escalation signal could quickly unwind the safe-haven trade. Markets will be watching for confirmation of renewed U.S. strikes, Iran's response, and whether Trump's Spain trade threat translates into a formal policy given that EU trade policy is negotiated collectively through the European Commission.