Brent oil surges above $80 as Trump declares Iran ceasefire over

The price of Brent crude, the benchmark international oil contract, jumped back above $80 per barrel on Wednesday after US President Donald Trump announced that the ceasefire with Iran was over, reigniting fears of a broader conflict in the Middle East.

The price of Brent crude, the benchmark international oil contract, jumped back above $80 per barrel on Wednesday after US President Donald Trump announced that the ceasefire with Iran was over, reigniting fears of a broader conflict in the Middle East.

Brent crude for September delivery surged 8% to $80.12 per barrel, while the US benchmark West Texas Intermediate for August delivery gained 7.7% to $75.83 per barrel. The sharp spike reflects market concerns over potential disruptions to oil supplies from the region, particularly through the Strait of Hormuz, a critical chokepoint through which approximately 20% of global oil supplies pass.

Trump’s announcement came shortly after Iran’s Quds Force commander, Brigadier General Esmaeil Qaani, arrived in Najaf, Iraq, to attend the funeral procession for the late supreme leader Ayatollah Ali Khamenei. Earlier on Tuesday, the US had revoked a license that authorized Iranian oil sales, a move that had already begun to pressure prices.

The collapse of the ceasefire marks a significant escalation in tensions between Washington and Tehran. The ceasefire, which had been brokered under the Islamabad Memorandum of Understanding, was intended to provide a 60-day window for negotiations on a permanent settlement. However, continued attacks on commercial shipping in the Strait of Hormuz, which the US attributed to Iran, led to the US decision to revoke the oil license and ultimately declare the truce over.

The oil price surge also comes as the International Energy Agency warned that global oil markets remain tight, with limited spare capacity to compensate for any major supply disruption. Analysts have cautioned that prices could climb further if the conflict escalates, potentially hitting consumers worldwide with higher energy costs.

As markets react to the news, all eyes are now on the region. The end of the ceasefire raises the prospect of renewed hostilities and further volatility in global energy markets. For now, the price of oil reflects the market’s assessment that the risk of a major supply shock has increased significantly. The coming days will be critical in determining whether diplomatic efforts can salvage the peace process or whether the region will slide back into full-scale conflict.