Global oil prices jump over 5% after US strikes Iran as Trump ends peace deal

Global crude oil prices surged by more than five per cent on Wednesday after the United States launched fresh military strikes on Iran, reigniting fears of supply disruptions in the Middle East and raising concerns over inflation. The strikes followed attacks on three commercial vessels transiting the Strait of Hormuz, which Washington blamed on Tehran. In a post on X, the US Central Command said, "Strikes are in response to Iranian attacks on three commercial vessels that were transiting the Strait of Hormuz. Iran's demonstrated aggression was unwarranted, dangerous, and a clear violation of the ceasefire." The escalation came hours after US President Donald Trump declared that he no longer wished to pursue diplomacy with Iran, effectively abandoning the interim peace arrangement reached earlier this year. Speaking to reporters during the NATO summit in Ankara, Trump said he no longer wanted to engage with Tehran, describing the Iranian leadership as "scum". The renewed tensions sent energy markets sharply higher. US West Texas Intermediate (WTI) crude climbed 5.8 per cent to USD 74.50 a barrel, while global benchmark Brent crude rose 5.65 per cent to USD 78.35 a barrel. Oil prices had previously retreated to pre-conflict levels after the two countries signed a Memorandum of Understanding (MoU) in June. The agreement halted hostilities and reopened the Strait of Hormuz to commercial shipping for a 60-day toll-free period, easing concerns over global energy supplies. The United States has also withdrawn the sanctions waiver granted to Iran following the interim agreement and the first round of negotiations held in Switzerland. Shipping activity through the Strait had recovered as tensions eased and hopes of a diplomatic breakthrough grew. The latest military escalation has renewed fears that crude prices could climb further, adding pressure to global inflation at a time when energy costs remain a key concern. Higher fuel prices are also likely to complicate the domestic economic outlook in the United States. Despite the recent fall in crude prices, petrol prices have remained elevated, posing a political challenge for Trump ahead of the November midterm elections. The renewed conflict has also increased expectations that the US Federal Reserve may be forced to tighten monetary policy if inflationary pressures intensify, even as its newly appointed chairman, Kevin Warsh, has identified price stability as a key priority. (With ANI inputs) Stay informed on all the latest news, real-time breaking news updates, and follow all the important headlines in india news and world news on Zee News.