Brent crude prices surged sharply on Thursday, crossing USD 79 per barrel following fresh US military strikes on Iran that ended an eight-week ceasefire, reigniting concerns over supply disruptions in the Middle East.
Brent crude hits USD 79.15 intraday high
Brent crude was trading at USD 78.68 per barrel, up 0.95 per cent (USD 0.74) from the previous close of USD 78.02, according to market data. It hit a day high of USD 79.15 per barrel. West Texas Intermediate (WTI) crude was trading at USD 74.22 per barrel, surging 0.92 per cent (USD 0.68).
US strikes and Trump's ceasefire declaration spark rally
Both Brent and WTI crude futures had already climbed more than USD 1 in after-hours trading on Wednesday after the US military launched a fresh wave of strikes on Iran. US President Donald Trump told the NATO summit in Turkey that the ceasefire with Iran was "over," driving oil prices sharply higher.
Stock markets mixed as oil jumps
US stocks ended mixed on Wednesday. The Dow Jones Industrial Average tumbled 576.76 points, or 1.09 per cent, to 52,348.39, while the S&P 500 slipped 0.28 per cent to 7,482.71. In contrast, the Nasdaq Composite edged up 0.2 per cent to close at 25,870.65.
Oil settles sharply higher
Oil prices surged, with Brent crude settling 5.43 per cent higher at USD 78.19 per barrel and WTI rising 4.37 per cent to USD 73.52 per barrel, as renewed geopolitical tensions raised fears of potential supply disruptions.
US Central Command confirms fresh strikes
American forces carried out fresh strikes on Iran on Wednesday night, the US Central Command said, just hours after President Donald Trump declared an end to the eight-week ceasefire. Trump signalled the possibility of another round of military strikes against the Islamic Republic.
Referring to Tuesday's attacks, Trump said Washington had already struck Tehran "very hard" and warned that further military action could follow. He accused Iranian leaders of repeatedly shifting their position during negotiations, calling them "cuckoo" and claiming that Tehran had privately indicated its willingness to reach a deal before publicly reversing its stance.
"They'll agree on everything, and then they'll go and have a news conference and say we never even talked about it," Trump said, according to ANI.
