Oil Rises More Than 5% as Iran-US Fighting Resumes, Trump Says Ceasefire Is Over

Oil prices surged early Wednesday as the U.S. and Iran traded attacks, with President Trump saying the ceasefire deal reached last month is over. West Texas Intermediate crude oil for August delivery was last seen up $3.65, or 5.1%, to $74.00 per barrel, the highest since June 18, while September Brent oil was up $3.92, or 5.3%, to $78.08. The rise comes as the U.S. renewed attacks on Iran on Tuesday following Iranian strikes on ships moving through the Strait of Hormuz. Trump told reporters at the NATO summit in Turkey the ceasefire agreement between the two countries is "over". The U.S. on Tuesday also re-imposed sanctions on Iranian oil exports that were lifted after the June 18 ceasefire deal. "The latest rally followed US strikes on targets in Iran and Washington's decision to revoke a waiver allowing new sales of Iranian oil, in response to attacks on commercial shipping in the Strait of Hormuz. The escalation threatens fragile negotiations aimed at securing a permanent peace, with both sides accusing the other of violating the ceasefire," Ole Hansen, head of commodity strategy at Saxo Bank. Despite renewed fighting, ships trapped in the Persian Gulf since the start.