Global oil prices climbed more than 5% on Wednesday, reaching their highest levels in two weeks after US President Donald Trump declared that the memorandum of understanding aimed at ending the conflict with Iran was “over.”
The renewed tensions have raised concerns over potential disruptions to crude oil supplies from the Middle East, a region that accounts for a significant share of global energy production.
Brent, WTI Crude Hit Two-Week High
As of 0832 GMT:
- Brent crude futures rose $3.82 (5.15%) to $77.98 per barrel.
- US West Texas Intermediate (WTI) crude gained $3.70 (5.25%) to $74.14 per barrel.
Both benchmark contracts touched their highest levels since June 23, reflecting growing investor concerns over geopolitical risks.
Fresh Iran Tensions Fuel Market Concerns
Oil markets reacted sharply after President Trump said the memorandum of understanding intended to ease tensions with Iran had effectively collapsed.
The comments followed renewed US military action and heightened uncertainty over the security of energy supplies from the Gulf region, a critical route for global oil exports.
Earlier Gains Driven by US Policy Shift
Crude prices had already climbed about 3% on Tuesday after the United States revoked the general licence that had allowed the sale of Iranian crude oil.
The policy change added to fears of tighter global oil supplies, with traders closely monitoring developments involving Iran and the broader Middle East.
Market participants are expected to remain focused on geopolitical developments, as any disruption to oil production or shipping routes in the region could further influence global crude prices.
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