US Oil Update: Crude Surges as US-Iran Truce Collapses, Trump Warns of Fresh Attacks

Crude oil futures rallied in midday trading on Wednesday after President Trump declared the ceasefire with Iran over and signaled that further military strikes were imminent. Front-month West Texas Intermediate crude futures climbed 5.8% to $74.48 per barrel, while Brent futures jumped 6.2% to $78.77/bbl. Trump, speaking on the sidelines of a NATO summit in Ankara on Wednesday, said an interim agreement to end the Middle East conflict was "over" and warned of further military strikes, reviving geopolitical risk premium in prices and stoking fears of supply disruptions. The development comes a day after the US Treasury Department revoked a waiver that had permitted Iranian oil exports to resume under the terms of the tentative peace deal reached last month. Trump also threatened to bomb Iran again and reimpose the US naval blockade of the country's ports and vessels. The US Central Command said on Wednesday that over 20 navy warships are patrolling waters across the Middle East. Soojin Kim, research analyst at MUFG, said that the latest developments are likely to restore part of the geopolitical premium that had largely unwound in recent weeks, though the broader outlook.